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Sample Questions

Sample questions

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answer Economic question

5. The dairy farm company, a small producer of milk and cheese, has estimated the quantities of milk and cheese that it can produce with three levels of total expenditures or total costs.  These are indicated in the following table. If the price of milk (product A) and the price of cheese (product B) that the firm receives are $1 each per unit of the products, draw a figure showing the maximum total profit ( ) that the firm can earn at each level of TC and the overall maximum profit that the firm can earn for the three different levels of TC.