Answer to Question #8819 in Microeconomics for Shaminee

Question

Use the following table of expected cost and revenue data for the Tipah Tomato Farm to answer this question. Tipah produces tomatoes and sell them in a competitive price-taker market.


"Output
(tons per month)" "Total Cost
RM" "Price per ton
RM"
3 2250 500
4 2500 500
5 2800 500
6 3050 500
7 3450 500
8 4000 500
9 4275 500
10 5150 500
If Tipah is a profit maximizer, how many tomatoes should she produce when the market price is RM500 per ton? [5 marks]