Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $28 per box. Farmer Brown's marginal cost of production is illustrated in the table.| Boxes of Peaches | Market Price (per box) | Marginal Cost (MC) ||------------------|------------------------|---------------------|| 0 | $28 | || 1 | 28 | 8.00 || 2 | 28 | 4.00 || 3 | 28 | 12.00 || 4 | 28 | 24.00 || 5 | 28 | 48.00 || 6 | 28 | 72.00 |**Questions:**1. What price will Farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $____ per box of peaches. *(Enter your response as an integer.)*2. What is Farmer Brown's profit-maximizing level of output? Farmer Brown maximizes profit when producing ____ boxes of peaches. *(Enter your response as an integer.)*

Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $28 per box. Farmer Brown's marginal cost of production is illustrated in the table. Boxes of Peaches Market Price (per box) $28 28 Marginal Cost (MC) 1 8.00 2 28 4.00 3 28 12.00 4 28 24.00 28 48.00 28 72.00 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $ per box of peaches. (Enter your response as an integer.) What is farmer Brown's profit-maximizing level of output? Farmer Brown maximizes profit when producing boxes of peaches. (Enter your response as an integer.)

Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $28 per box. Farmer Brown's marginal cost of production is illustrated in the table. Boxes of Peaches Market Price (per box) $28 28 Marginal Cost (MC) 1 8.00 2 28 4.00 3 28 12.00 4 28 24.00 28 48.00 28 72.00 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $ per box of peaches. (Enter your response as an integer.) What is farmer Brown's profit-maximizing level of output? Farmer Brown maximizes profit when producing boxes of peaches. (Enter your response as an integer.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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