Question 51 (4 points)
A farmer keeps beehives and sells 250 quarts of honey per month. The honey market is perfectly competitive, and the price of a quart of honey is $15. The farmer has an average variable cost of $5 and an average fixed cost of $3. At 250 quarts per month, the marginal cost is $10.
a. Is the farmer maximizing his profit? If not, what should the farmer do?
b. Calculate the farmer's total revenue, total cost, and total economic profit or economic loss when he produces 250 quarts of honey.
Explain and show mathematical work to receive full points.