Ask Question
31 January, 21:48

Farmer john can produce as much corn as he wants at the going price of $48 per bushel. at his current production level, the marginal cost is $18. what should the company do?

a. increase production

b. decrease production

c. stay at this level of production

d. none of the above

+3
Answers (1)
  1. 31 January, 21:52
    0
    Given that the marginal cost is $18, and the price per Bushel of $48, the farmer can choose to increase production or not. This is because at this margin, the return on investment will be:

    (48-18) / 18*100

    =166.67%

    Which means he'll still be profitable if he chooses to do nothing. The correct answer is:

    c. stay at this level of production.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Farmer john can produce as much corn as he wants at the going price of $48 per bushel. at his current production level, the marginal cost ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers