Tabitha Tingling Tomatoes (40 points). Show all work for each of the sub-questions: After remaining a...
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Tabitha Tingling Tomatoes (40 points). Show all work for each of the sub-questions: After remaining a housewife, Tabitha takes over her Dad's farm growing Turnips in Tompkins, Tennessee. Tabitha states that her fixed costs are $400. Whenever she hires any workers, she pays the minimum wages of $7.50/hour for a 40-hour work-week. Since Tabitha's is a price-taker, she can sell turnips at an average price of $15/crate. To help finance operating costs, Tabitha uses her savings of $50,000 which could have earned 7% had she invested in the market. Based on this data, please answer the following questions: a) Complete the table above b) Using the data, how many units would you recommend her to produce? Why? Explain. c) Based on the data given, how much are Tabitha's accounting/economic profits Why? d) Can you offer Tabitha a guiding economic "rule" to follow in decision making future? Tabitha has poor knowledge of economics but has a logical and rational mind, offer a convincing response why she should follow this rule. e) If the market price for turnips fall below S13/crate, how much should Tabitha produce at this new price? Why? What is the basis for your recommendation? Explain. Labor Quantity of Crates 0 1 2 3 4 5 a ECON 5308 7 8 0 25 55 90 130 160 180 190 185 Total fixed cost PAPER I DUE DATE: Tue, November 29, 2022 Total Total Average Average Average Marginal Marginal variable cost fixed variable total cost Revenue cost cost cost cost Tabitha Tingling Tomatoes (40 points). Show all work for each of the sub-questions: After remaining a housewife, Tabitha takes over her Dad's farm growing Turnips in Tompkins, Tennessee. Tabitha states that her fixed costs are $400. Whenever she hires any workers, she pays the minimum wages of $7.50/hour for a 40-hour work-week. Since Tabitha's is a price-taker, she can sell turnips at an average price of $15/crate. To help finance operating costs, Tabitha uses her savings of $50,000 which could have earned 7% had she invested in the market. Based on this data, please answer the following questions: a) Complete the table above b) Using the data, how many units would you recommend her to produce? Why? Explain. c) Based on the data given, how much are Tabitha's accounting/economic profits Why? d) Can you offer Tabitha a guiding economic "rule" to follow in decision making future? Tabitha has poor knowledge of economics but has a logical and rational mind, offer a convincing response why she should follow this rule. e) If the market price for turnips fall below S13/crate, how much should Tabitha produce at this new price? Why? What is the basis for your recommendation? Explain. Labor Quantity of Crates 0 1 2 3 4 5 a ECON 5308 7 8 0 25 55 90 130 160 180 190 185 Total fixed cost PAPER I DUE DATE: Tue, November 29, 2022 Total Total Average Average Average Marginal Marginal variable cost fixed variable total cost Revenue cost cost cost cost
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