A villager estimates that if he picks his orange crop now, he will obtain 2000 boxes of apples, which he can sell at $5 per box. However, he thinks his crop will increase by 150 boxes of apples for each week he delays picking, but that the price will drop at a rate of $0.25 per box per week; in addition, he estimates approximately 30 boxes per week will spoil for each week he delays picking. When should he pick his crop to obtain the largest total cash return? How much will he receive for his crop at that time?
A villager estimates that if he picks his orange crop now, he will obtain 2000 boxes of apples, which he can sell at $5 per box. However, he thinks his crop will increase by 150 boxes of apples for each week he delays picking, but that the price will drop at a rate of $0.25 per box per week; in addition, he estimates approximately 30 boxes per week will spoil for each week he delays picking. When should he pick his crop to obtain the largest total cash return? How much will he receive for his crop at that time?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A villager estimates that if he picks his orange crop now, he will obtain 2000 boxes of
apples, which he can sell at $5 per box. However, he thinks his crop will increase by 150
boxes of apples for each week he delays picking, but that the
$0.25 per box per week; in addition, he estimates approximately 30 boxes per week will
spoil for each week he delays picking. When should he pick his crop to obtain the largest
total cash return? How much will he receive for his crop at that time?
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