Anthony's Bees is an Internet e-tailer that sells equipment to aspiring beekeepers. A complete starter kit in this competitive market sells for $900. Anthony's total costs are given by =3^3, where Q is the number of starter kits he sells each year. The corresponding marginal cost of producing beehives is =9^2.

a. What is Anthony's marginal revenue from selling another starter kit?

=$MR=$

b. How many starter kits should Anthony sell each year in order to maximize his profits?

=

c. How much profit will Anthony earn at this output level?

Profit = $

d. Suppose Anthony is producing the quantity indicated in part b. If he decides to produce one more starter kit, what will his new profit be?

Profit = $

e. The marginal revenue of producing one more starter kit in part d is (ch00se frp,; more,less)

than its marginal cost.

2.Concrete blocks are produced by thousands of small producers in a perfectly competitive market. Each producer faces total costs of =^36^2+20+300, where Q is the quantity of blocks, in hundreds. The corresponding marginal cost curve is given by =3212+20.

a. What is the average variable cost (AVC) faced by each producer in the short run?

AVC =

b. What is the minimum price sellers must receive if they are to produce any concrete blocks at all?

3.Hack's Berries faces a short-run total cost of production given by

=3122+100+1,000TC=Q312Q2+100Q+1,000

where Q is the number of crates of berries produced per day. Hack's marginal cost of producing berries is

=3^224+100

a. What is Hack's fixed cost (FC)?

FC = $

b. What is Hack's short-run average variable cost (AVC)?

AVC =

c. If berries sell for $60 per crate, how many berries should Hack produce? Remember the relationship between MC and AVC when AVC is at its minimum.

d. If the price of berries is $73 per crate, how many berries should Hack produce?

Round answer to one place after the decimal.

4.Five hundred small almond growers operate in areas with plentiful rainfall. The marginal cost of producing almonds in these locations is given by MC = .02Q, where Q is the number of crates produced in a growing season. Three hundred almond growers operate in drier areas where costly irrigation is required. The marginal cost of growing almonds in these locations is given by MC = .04Q.

When entering an equation, be sure to use captial Q for quantity and capital P for price.

a. Find the individual supply curve for each type of almond grower.

Rainy-area growers supply curve: =

Dry-area growers supply curve: =

b. "Add up" the individual supply curves to derive the market supply curve.

Market supply curve: Q_s =

c. If the market demand for almonds is Q_d = 105,000 - 2,500P, what will be the equilibrium price and equilibrium quantity?

P* = $

Q* =

d. How many almonds will each type of almond grower produce at that price?

Rainy-area growers:

Dry-area growers: