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coldgirl
12 days ago
7

Farmer john can produce as much corn as he wants at the going price of $48 per bushel. at his current production level, the marg

inal cost is $18. what should the company do?
a. increase production

b. decrease production

c. stay at this level of production

d. none of the above
Business
1 answer:
marusya05 [3K]12 days ago
7 0
Considering the marginal cost is $18 while the price per bushel is $48, the farmer has the option to increase production or not. At this margin, the investment return is calculated as:
(48-18)/18*100
=166.67%
This indicates he would still maintain profitability even if he decides not to expand production. The right decision would be:
c. maintain the current production level.
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