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.The farmer's maximum expected profit is:

A) −$7.75.
B) $0.
C) $7.75.
D) None of the answers are correct.