A Peach Farmer Must Decide How Many Peaches to Harvest

question 82

Multiple Choice

A peach farmer must decide how many peaches to harvest for the world peach fair. He knows that there is a 25 percent chance that the world price will be $3, a 50 percent chance that it will be $3.50, and a 25 percent chance that it will be $4. His cost function is C(Q) = 0.05Q². The farmer's maximum expected profit is:

• A) $61.25.
• B) 0.
• C) $122.50.
• D) None of the answers are correct.

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Definitions:

Superiors

Individuals who hold a higher position or rank in an organizational hierarchy.

Functional Departmentation

The process of organizing a company's structure based on specialized functions such as marketing, finance, or human resources.

Sales Reps

Individuals who are employed to sell products and services for a company.

Sales Manager

A professional responsible for directing and overseeing a team of salespeople, setting sales goals, and developing strategies to achieve those goals.