OJ's Orange Juice Produces Orange Juice to Sell in a Competitive

Multiple Choice

OJ's Orange Juice produces orange juice to sell in a competitive market.Given uncertainty in weather patterns,OJ has to determine how much juice to produce before knowing the competitive price.It is estimated that there is a 10 percent chance the competitive price will be $5 and a 90 percent chance the price will be $2.If the marginal cost of producing orange juice is MC(Q) = 2Q,then to maximize expected profits,OJ should produce:

A) 0.25 units.
B) 0.9 units.
C) 1.15 units.
D) 2.5 units.