Assume you have a fixed amount of pasture. The table below shows the relationship between the number of cows ran on the pasture and the amount of bect produced. Complete the table using the following information: Total fixed costs = $20,000, variable cost of $180 per cow, and a beef price of $90.00 per cwt. No. of Output Total Total Total Average Average Average Marginal Marginal COWS (cwl of Variable Fixed Cost Vanable Fixed Total Cost Revenue (Head) beel) Cost Cost Costs Costs Cost 0 0 XOX Xxx XOOX XOOX XXX 25 104 50 220 75 322 100 413 125 494 150 568 175 629 200 676 225 710 250 275 737 730 For questions 1 - 3 assume you do not own the pasture but are only making a study to determine if you could make a profit if you should purchase it. Are you in the short run or long run with respect to the pasture? 1 Ans. 2 What is the lowest beef price which would make purchasing the pasture and producing beof a breakeven deal? (i.e, the price would have to be higher than this value before you would have a profit) Ans a) How many cows would you want at this price? Ans b) What would your profit or loss be? Ans 3. Assuming a $90.00 beef price as given, would you purchase the pasture to raise beef? WHY? Assume you have a fixed amount of pasture. The table below shows the relationship between the number of cows ran on the pasture and the amount of bect produced. Complete the table using the following information: Total fixed costs = $20,000, variable cost of $180 per cow, and a beef price of $90.00 per cwt. No. of Output Total Total Total Average Average Average Marginal Marginal COWS (cwl of Variable Fixed Cost Vanable Fixed Total Cost Revenue (Head) beel) Cost Cost Costs Costs Cost 0 0 XOX Xxx XOOX XOOX XXX 25 104 50 220 75 322 100 413 125 494 150 568 175 629 200 676 225 710 250 275 737 730 For questions 1 - 3 assume you do not own the pasture but are only making a study to determine if you could make a profit if you should purchase it. Are you in the short run or long run with respect to the pasture? 1 Ans. 2 What is the lowest beef price which would make purchasing the pasture and producing beof a breakeven deal? (i.e, the price would have to be higher than this value before you would have a profit) Ans a) How many cows would you want at this price? Ans b) What would your profit or loss be? Ans 3. Assuming a $90.00 beef price as given, would you purchase the pasture to raise beef? WHY