25. A fruit processing firm is introducing a new fruit drink, "Peach Passion," into the domestic market. The firm faces uncertain output prices in the initial marketing period and intends to make a short-run decision by choosing the level of production that maximize the expected value of utility:

El Ulrr)) = Err - a varlrr).

Profit is defined by rr = Pq - Clq), P is the price received for a unit of Peach Passion, U is utility, the cost function is defined by c(q) = .5q2, a ::: 0 is a risk aversion Problems parameter, and the PDF of the uncertain output price is given by I(p) = .048(5p - p2)Ilo,sl(P).