A Peach Farmer Must Decide How Many Peaches to Harvest

Multiple Choice

A peach farmer must decide how many peaches to harvest for the world peach fair .He knows that there is a 25 percent chance that the world price will be $3,a 50 percent chance that it will be $3.50,and a 25 percent chance that it will be $4.His cost function is C(Q) = 0.05Q².The farmer's maximum expected profit is:

A) $61.25.
B) 0.
C) $122.50.
D) None of the answers are correct.