Question: The table below is for an apple orchard and includes the firm's fixed costs and the number of workers needed to produce various quantities of

 The table below is for an apple orchard and includes the

The table below is for an apple orchard and includes the firm's fixed costs and the number of workers needed to produce various quantities of apples in a day. Each worker at the orchard is paid a wage of $300 a day.

firm's fixed costs and the number of workers needed to produce various

1. [25pt] The table below is for an apple orchard and includes the firm's fixed costs and the number of workers needed to produce various quantities of apples in a day. Each worker at the orchard is paid a wage of $300 a day. a. [12pt] Complete the table. Quantity Workers Variable Marginal Marginal Total Average Fixed Average Average of Wage Fixed Variable Total Needed Cost Cost Product Cost Cos Apples Cost Cost Cost 0 0 $300 $0 1000 1000 1,000 3 $300 2,000 4 $300 3,000 6 $300 4,000 9 $300 5,000 13 $300 b. [10pt] Suppose the market price of apples is $1.00. At the market price, this firm can sell as many apples as it can produce. Complete the following table based upon this information. Quantity of Total Revenue Marginal Accounting Apples Total Cost Revenue Marginal Cost Profit 0 1,000 2,000 3,000 4,000 5,000 c. [3pt] Assuming the apple orchard can only produce the exact quantities of apples that are in this table. What is the profit maximizing quantity of apples

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!