The Jones are small farmers in the wheat industry – they are price takers. Their cost function is: TC = 600,000 + 3,000Q + Q2 and MC = 3,000 + 2Q. The market price is $5,000 per ton. Assuming the Jones are maximizing profits (or minimizing loses), how much profit are they making? You must show your work.
The Jones are small farmers in the wheat industry – they are price takers. Their cost function is: TC = 600,000 + 3,000Q + Q2 and MC = 3,000 + 2Q. The market price is $5,000 per ton. Assuming the Jones are maximizing profits (or minimizing loses), how much profit are they making? You must show your work.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The Jones are small farmers in the wheat industry – they are
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