Answer:
Farmer Parker will maximize profits by producing ___________ bushels of wheat (enter a whole number).
Suppose that the marginal cost of wheat increases by $0.50 for every bushel of wheat produced. For example, the marginal cost of producing the eighth bushel of wheat is now $6.50 Will this increase in marginal cost change the profit-maximizing level of production for Farmer Parker?
Yes or No?
How much profit will Farmer Parker make now?
(round your answer to the nearest penny).
Explanation:
A picture is attached which is part of the question and the file attached is the solution to the problem.
The increase in marginal cost doesn't change the profit-maximizing level of production for the farmer.
The marginal cost is the change in total production that's a result of the production of one extra unit of a product.
From the complete question, the profit is the excess of revenue over costs. Therefore, the profit is maximized when the farmer produces at 6 units.
Also, with the increase in the marginal cost, the profit-maximizing level of production of the farmer doesn't change. The profit that the farmer will make after the increase in the marginal cost is $6.
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