Producing one hectare of palay costs ₱62,000 and yields 4,000 kg. What farmgate price per kilogram lets the farmer break even?
Show step-by-step solution
Answer: 15.5 ₱
- Break-even when revenue equals cost: .
- pesos per kilogram.
- Any price above ₱15.50 gives profit; the revenue function is linear in price.