= Normal No Spac. Heading 1 Heading 2 Title Styles (7) (6) (8) (9) Paragraph (1) (2) (3) Number Output of steers cwt TFC (variable input) beef (output) ($) TVC (5) $495*(1) TC (S) (3)+(4) TR (5) MC($) MR ($) $87.50*(2) A(5)/A(2) A6/A(2) Profit (5) 6 (5) 10 75 150 225 295 360 420 475 525 610 a. What is the profit-maximizing level of input? b. What is the profit-maximizing level of output? c. What is the maximum profit at the profit-maximizing point that can be made with the given prices? D' Focus U O DI 3 Bater to stay in Protected View Enable Editing Each problem is worth 10 points Show all your work wherever possible to earn full credit!!! 1. The table below is an example of the common problem of determining the profit- maximizing stocking rate of steer calves for a fixed amount of pasture land. Variable costs are assumed to be $495 per steer (steers are the only variable input). Total fixed costs are assumed to be $5,000 per year and the selling price is $87.50 per cwt. Fill out the table assuming the firm is operating in a perfectly competitive environment and answer the questions below (hint: if you want, you can use Excel to fill out the table). (5) (6) (8) (9) TFC (5) TVC (8) S495*(1) TC (S) (3)+(4) TR (S) MC($) MR ($) $87.50"(2) A(5)/A(2) A(6)/A(2) Profit (S) 6 (5) 75 (1) (2) Number Output of steers cwt (variable input) beef (output) 0 10 20 150 225 295 360 420 475 525 100 610