Part III: Short answer and problem solving (2 pts. each) 1. Given the following information for marginal revenue and marginal cost, what is the profit maximizing level of yield? Marginal cost (MC) (ATCIATPP) $ Input level 0 2 3 4 5 6 7 8 Nitrogen applied (lbs.) 0 25 50 75 100 125 150 175 200 Yield (bu.) 130 148 162 170 177 180 182 183 183 Total Cost Total Revenue (TC) $ TR 750.00 650.00 762.50 740.00 775.00 810.00 787.50 850.00 800.00 885.00 812.50 900.00 825.00 910.00 837.50 915.00 850.00 915.00 Profit (TR-TC)* (100.00) (22.50) 35.00 62.50 85.00 87.50 85.00 77.50 65.00 Marginal revenue (MR) (ATRATPP) $ XOX 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 0.69 0.89 1.56 1.79 4.17 6.25 12.50 infinite Answer: bushels 2. Using the decision rule from (1) above, why would the producer not want to produce above this level? 2