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2. Down the street from the dairy farm is a farmer with a pumpkin patch. Every season he produces pumpkins according to f(a, 1) =
2. Down the street from the dairy farm is a farmer with a pumpkin patch. Every season he produces pumpkins according to f(a, 1) = 10al/2/1/2 where a is acreage and I is farm labor. He owns the land, but he does pay annual property tax 7 * a on his land. He can hire laborers at a wage rate of $10. He has already spent $200 on pumpkin seeds, and has acreage a he can use for pumpkins. a. What are the variable costs? Fixed costs? What are total costs? b. What is the short run demand for labor (keep acres fixed in the SR.)? c. What is the profit function? (as a function of acres a, price of pump- kins p and tax rate 7 only)
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