An Apple Farmer Must Decide How Many Apples to Harvest

Multiple Choice

An apple farmer must decide how many apples to harvest for the world apple market.He knows that there is a one-third probability that the world price will be $1,a one-third probability that it will be $1.50,and a one-third probability that it will be $2.His cost function is C(Q) = 0.01Q².What is the expected price in the world apple market?

A) $1.50
B) $1.80
C) $2.00
D) $1.40