8. A producer is deciding whether they should produce corn or not. Based on the budget below, what should the producer do? Calculate TR, TVC, TFC, TC, AVC, AFC, ATC below for one acre of corn. (Each box is worth 2 points- 14 points) Corn budget, one acre Yield per acre Price per bushel Total revenue per acre 221 $3.50 Variable Costs Fertilizer Pesticides Seed Drying Storage Crop Insurance Fuel Utilities Labor (variable) Total Variable Costs $ 135.00 $ 60.00 $ 114.00 $ 25.00 $ 8.00 $ 24.00 $ 17.00 $ 15.00 $ 30.00 Fixed costs Labor (Fixed) Building repairs and depreciation Insurance Interest Misc Land rent Total Fixed Costs $ 40.00 $ 28.00 $ 12.00 $ 12.00 $ 10.00 $ 200.00 Total Costs Average fixed cost Average variable cost Average total costs Which of the following is true based on the budget above? (2 points) A. The producer should produce the corn and will make a profit. B. The producer should produce; they will incur a loss that is less than TFC. C. The producer should not produce; they will incur a loss equal to the TFC. 8. A producer is deciding whether they should produce corn or not. Based on the budget below, what should the producer do? Calculate TR, TVC, TFC, TC, AVC, AFC, ATC below for one acre of corn. (Each box is worth 2 points- 14 points) Corn budget, one acre Yield per acre Price per bushel Total revenue per acre 221 $3.50 Variable Costs Fertilizer Pesticides Seed Drying Storage Crop Insurance Fuel Utilities Labor (variable) Total Variable Costs $ 135.00 $ 60.00 $ 114.00 $ 25.00 $ 8.00 $ 24.00 $ 17.00 $ 15.00 $ 30.00 Fixed costs Labor (Fixed) Building repairs and depreciation Insurance Interest Misc Land rent Total Fixed Costs $ 40.00 $ 28.00 $ 12.00 $ 12.00 $ 10.00 $ 200.00 Total Costs Average fixed cost Average variable cost Average total costs Which of the following is true based on the budget above? (2 points) A. The producer should produce the corn and will make a profit. B. The producer should produce; they will incur a loss that is less than TFC. C. The producer should not produce; they will incur a loss equal to the TFC