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 $22 per box.Farmer Brown's marginal cost of production is illustrated in the table.Boxes ofMarket PriceMarginalCost (MC)(per box)$22Peaches1226.002223.003229.002218.0052236.0054.0022What price will farmer Brown charge when maximizing profit?Farmer Brown will charge a price of $22 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 4 boxes of peaches. (Enter your response as an integer.)

We will use concepts such as Profit maximisation under perfect competition market structure.

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 $22 per box. TTI Boxes of Peaches Market Price (per box) $22 22 22 Marginal Cost (MC) 6.00 2 3.00 9.00 3 4 22 22 18.00 5 22 22 36.00 54.00 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $ 22 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 4 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 $22 per box. TTI Boxes of Peaches Market Price (per box) $22 22 22 Marginal Cost (MC) 6.00 2 3.00 9.00 3 4 22 22 18.00 5 22 22 36.00 54.00 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $ 22 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 4 boxes of peaches. (Enter your response as an integer.)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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