lectur23-page7 - TNR, no sell = 0 - $.05 /lb. = -$.05 /lb....

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We harvest and sell ! Because: We will lose $.03 /lb. if we harvest and sell, but if we don't harvest and sell we lose $.05 /lb. Total net revenue = TR - TC
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Unformatted text preview: TNR, no sell = 0 - $.05 /lb. = -$.05 /lb. TNR, sell = $.04 /lb. - $.07 /lb. = -$.03 /lb. Therefore we minimize our losses by harvesting and selling....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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