suppose the market for the apples is perfectly competitive i

suppose the market for the apples is perfectly competitive. if the market price is 36 per box, then the maximize profits, farmer smith should produce

Solution

Whatever quantity produced will be sold in perfectly competitive market and the firm will produce profits untill and unless they are setting the price in accordance with the market price.

As this is a perfectly competitive market so the firms are price taker and P=MC .

There is knowledge symmetry and all the people knows each other very well so we need to set price as market place and should produce within our natural capacity