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On a Small Island, Papayas Can Only Be Sold in the Market

Question 12

Multiple Choice

On a small island, papayas can only be sold in the market in the center of the island.Although papayas only cost $1 to raise, they can be sold in the market for $3.But it costs $.10 per kilometer to transport each papaya to market.If an acre of land grows 200 papayas, how much rent does an acre of land 4 kilometers from the market command?


A) $302
B) $320
C) $240
D) $262
E) None of the above.

Correct Answer:

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