following table for average fixed cost (AFC) defined as TFC/(y-50) and for average total cost ATC...

 

 
 

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following table for average fixed cost (AFC) defined as TFC/(y-50) and for average total cost ATC = AFC + AVC. 50 yield AFC 00 ATC 00 yield AFC ATC 68 52 $10.00 $10.20 70 54 72 56 74 58 76 60 78 62 80 64 66 Graph the ATC, AVC and MC curves together for yield per acre from 54 to 80 bushels. Measure the yield on the horizontal axis (x-axis). A 1(d) Average-margin relation Does the average-margin relation hold between the ATC and MC curves? Explain. A 1(e) Economic profit The farm is a price taker. The price of wheat is $4.00 per bushel. Add the price-taker's demand curve to your diagram. (1) How many bushels per acre will the owner-manager choose to produce? Explain. (ii) What is the economic profit per acre? Explain. A 2(a) Derived demand According to the theory of derived demand (Module E), the owner-manager's optimal nitrogen application can be derived from the condition that: MPN = PN/PWHEAT Solve for this optimal nitrogen application in two ways: O using the marginal product of nitrogen diagram (see table on first page); and Solve for this optimal nitrogen application in two ways: O using the marginal product of nitrogen diagram (see table on first page); and O using math (see MPN equation on first page). A 2(b) Input: output Given your answer to 2(a), how many bushels of wheat are produced per acre? Explain. L following table for average fixed cost (AFC) defined as TFC/(y-50) and for average total cost ATC = AFC + AVC. 50 yield AFC 00 ATC 00 yield AFC ATC 68 52 $10.00 $10.20 70 54 72 56 74 58 76 60 78 62 80 64 66 Graph the ATC, AVC and MC curves together for yield per acre from 54 to 80 bushels. Measure the yield on the horizontal axis (x-axis). A 1(d) Average-margin relation Does the average-margin relation hold between the ATC and MC curves? Explain. A 1(e) Economic profit The farm is a price taker. The price of wheat is $4.00 per bushel. Add the price-taker's demand curve to your diagram. (1) How many bushels per acre will the owner-manager choose to produce? Explain. (ii) What is the economic profit per acre? Explain. A 2(a) Derived demand According to the theory of derived demand (Module E), the owner-manager's optimal nitrogen application can be derived from the condition that: MPN = PN/PWHEAT Solve for this optimal nitrogen application in two ways: O using the marginal product of nitrogen diagram (see table on first page); and Solve for this optimal nitrogen application in two ways: O using the marginal product of nitrogen diagram (see table on first page); and O using math (see MPN equation on first page). A 2(b) Input: output Given your answer to 2(a), how many bushels of wheat are produced per acre? Explain. L