Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
What is the profit maximizing combination of prices of vegetables sold double to $50? What is the profit maximizing combination of price the fruit sold decreased to $12?
![(2)
Cases of
Canned Fruit
Cases of
Canned
Vegetables
135,000
O
Table 7-3
PROFIT-MAXIMIZING COMBINATION OF PRODUCTS FOR SUNSPOT
(1)
(3)
Revenue, $33.33 x (1)
+ $25.00 x (2)
$4,499,550
(4)
Marginal Rate of
Product
Transformation,
A(1) ÷ A(2)
(5)
Ratio of Price of
Vegetables
to the Price of Fruit,
$25.00 $33.33
128,000
10,000
4,516,240
-0.70
0.75
119,000
20,000
4,466,270
-0.90
0.75
108,000
30,000
4,349,640
-1.10
0.75
95,000
40,000
4,166,350
-1.30
0.75
80,000
50,000
3,916,400
-1.50
0.75
63,000
60,000
3,599,790
-1.70
0.75
44,000
70,000
3,216,520
-1.90
0.75
23,000
80,000
2,766,590
-2.10
0.75
0
90,000
2,250,000
-2.30
0.75](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff93ee0c2-a3d2-410a-8d61-381ceafadbc6%2Fe525bd99-3ed8-426b-9379-a949bd64cde9%2Fec3ivnn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(2)
Cases of
Canned Fruit
Cases of
Canned
Vegetables
135,000
O
Table 7-3
PROFIT-MAXIMIZING COMBINATION OF PRODUCTS FOR SUNSPOT
(1)
(3)
Revenue, $33.33 x (1)
+ $25.00 x (2)
$4,499,550
(4)
Marginal Rate of
Product
Transformation,
A(1) ÷ A(2)
(5)
Ratio of Price of
Vegetables
to the Price of Fruit,
$25.00 $33.33
128,000
10,000
4,516,240
-0.70
0.75
119,000
20,000
4,466,270
-0.90
0.75
108,000
30,000
4,349,640
-1.10
0.75
95,000
40,000
4,166,350
-1.30
0.75
80,000
50,000
3,916,400
-1.50
0.75
63,000
60,000
3,599,790
-1.70
0.75
44,000
70,000
3,216,520
-1.90
0.75
23,000
80,000
2,766,590
-2.10
0.75
0
90,000
2,250,000
-2.30
0.75
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