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A Strawberry Farmer Has 5,000 Pounds of Strawberries Ready to Harvest

Question 126

Multiple Choice

A strawberry farmer has 5,000 pounds of strawberries ready to harvest. The cost of picking and transporting the strawberries to the market is $3,500. If the market pays $0.60 per pound of strawberries, what should the strawberry farmer do?


A) pick and sell the strawberries to recover the fixed costs of planting
B) not make a decision until he knows something about average costs
C) pick and sell the strawberries, since doing so increases profits by $500
D) not pick and sell the strawberries, since doing so would reduce profits by $500

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