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Question 6 (Marks 12) Refer to the information provided in the Table below to answer the following questions. Units TFC TVC TC MC 0 $50

Question 6 (Marks 12)

Refer to the information provided in the Table below to answer the following questions.

Units

TFC

TVC

TC

MC

0

$50

$0

$50

-

1

50

10

60

10

2

50

15

65

5

3

50

21

71

6

4

50

31

81

10

5

50

64

96

15

6

50

68

118

22

Assume Maria sells tomato baskets in a perfectly competitive market. The market price of a basket is $5. To maximize profits, how much quantity of tomato basket Maria should sell and how much she will earn?

Answer:

The firm should continue or shout down the production of tomato in short run when price is $5. Explain.

Answer:

If market price of a tomato basket is $15. To maximize profits, how much quantity of tomato basket Maria should sell how much will be her earning?

Answer:

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