Question: A grower estimates that if he picks his apple crop now, he will obtain 1000 boxes of apples, which he can sell at $3 per

A grower estimates that if he picks his apple crop now, he will obtain 1000 boxes of apples, which he can sell at $3 per box. However, he thinks his crop will increase by 120 boxes of apples for each week he delays picking, but that the price will drop at a rate of l5 per box per week; in addition, he estimates approximately 20 boxes per week will spoil for each week he delays picking. When should he pick his crop to obtain the largest total cash return? How much will he receive for his crop at that time?

Step by Step Solution

3.34 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Let t time from the present in weeks Volume of apples ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

7-B-E-M (37).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!