Happy Cows and Free Cows are two separate perfectly competitive dairy farms. The table above shows the respective firms' marginal cost at various production levels.
-Refer to the table above. The perfectly competitive market for dairy products has a 40 percent chance of a high price of $3.00 and a 60 percent chance of a low price of $2.00. To maximize expected profit, Happy Cows should produce_______ units and Free Cows should produce _______units.
A) 140; 120
B) 120; 120
C) 120; 140
D) 140; 140
Correct Answer:
Verified
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