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An apple farmer must decide how many apples to harvest for the U.S. market. He knows that there is a one-half probability that the world price will be $6, a one-quarter probabaility that it will be $8, and a one-quarter probability that it will be $10 per bushel. His cost function is C (Q) = 0..1 Q^2. How many bushels of apples should the farmer bring to market to maximize profits?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91998289

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