Unformatted text preview: 140 ; how many ounces of nutrient will be applied? 4 ; what will be the gardenia growers’ profit at this output level? $1200 . c. What is the social optimum in terms of dozens of gardenias (i.e. largest average production (AP) per ounce of nutrient)? 50 . d. Now assume the price of an ounce of nutrient falls to $100 per ounce. What is the new profit maximizing total output (in dozens of gardenias)? 155 . How many applications of the nutrient are employed at this level? 6 . e. As a result of this cost decrease have profits fallen or risen? risen . By how much? $1300 ....
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This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.
- Fall '09