Sam is one of many growers who sell potatoes to a large food-processing plant. The price of a bushel of potatoes is $4, and Sam sells 100 bushels at that price. He has $250 of fixed cost. Sam figures if he produces one more bushel of potatoes, his total variable costs will increase from $175 to $180. Should Sam produce any more potatoes at $4? Explain. Will he earn a positive economic profit? Show how you came to your answer.

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The Answer of Sam is one of many growers who sell potatoes to a large food-processing plant. The price of a bushel of potatoes is $4, and Sam sells 100 bushels at that price. He has $250 of fixed cost. Sam figures if he produces one more bushel of potatoes, his total variable costs will increase from $175 to $180. Should Sam produce any more potatoes at $4? Explain. Will he earn a positive economic profit? Show how you came to your answer.

Sam Is One of Many Growers Who Sell Potatoes to a Large