Use the following to answer questions : $$\begin{array}{l}
\text { Table: Soybean Cost }\
\begin{array} { l c }
\hline \begin{array} { l }
\text { Quantity } \
\text { of Soybeans } \
\text { (bushels) }
\end{array} & \begin{array} { c }
\text { Total Cost } \
( T C )
\end{array} \
\hline 0 & 12 \
1 & 26 \
2 & 33 \
3 & 42 \
4 & 54 \
5 & 69 \
6 & 84 \
7 & 104 \
\hline
\end{array}
\end{array}$$
-(Table: Soybean Cost)Use Table: Soybean Cost.If the market price of a kilogram of soybeans is $15,what will be the farmer's short-run profit at the optimal level of production?

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Soybean Cost }\
\begin{array} { l c } 
\hline \begin{array} { l } 
\text { Quantity } \
\text { of Soybeans } \
\text { (bushels) }
\end{array} & \begin{array} { c } 
\text { Total Cost } \
( T C )
\end{array} \
\hline 0 & 12 \
1 & 26 \
2 & 33 \
3 & 42 \
4 & 54 \
5 & 69 \
6 & 84 \
7 & 104 \
\hline
\end{array}
\end{array}$$
-(Table: Soybean Cost)Use Table: Soybean Cost.If the market price of a kilogram of soybeans is $15,what will be the farmer's short-run profit at the optimal level of production?

Quizplus · Accepted Answer

The optimal level of production is where marginal cost equals marginal revenue. The marginal cost for each additional bushel can be calculated from the total cost. The marginal revenue is the market price, $15. The profit is total revenue minus total cost. At 5 bushels, total revenue is $75 (5 bushels * $15), and total cost is $69, resulting in a profit of $6.

Use the Following to Answer Questions -(Table: Soybean Cost)Use Table: Soybean Cost