Here's the scenario, you have a tiny calf-raising business where you raise day-old calves until 3 months of age. You have several production possibilities, as seen in the chart below. You could raise from 1-10 calves. It would help if you determined the most profitable level of production. Complete the chart, given the following assumptions:

you raise dayold calves until 3 months of age. You have several production possibilities as seen in the chart below. You could raise from 1-10 calves. You must determine the most protable level of production. Complete the chart, given the following assumptions: 1. Your xed costs are $60 total each time (not for each calf}. 2. The Marginal Revenue per calf is $50. (That's the selling price for each calf.)(At the end of 3 months yes it's low but you're just raising them, not buying them to raise...) 3. FC = Fixed Costs, VC = Variable Costs, TC = Total Costs, AFC = Average Fixed Costs, ATC = Average Total Costs, MC = Marginal Costs, Revenue = MR x # of calves, Prot = Revenue - Total Costs 4. After you complete the chart, answer the questions about your calculations. The formatting must be neat and organized. Please write out the 5 questions or answer them in complete sentences. Calf Costs: 1. Output (No. of calves) FC VC TC AFC ATC MC Revenue Prot 0 50 65 75 83 90 115 131 153 211 262 \\OOONO'U'l-PWMl'O li O Questions: (To be completed after you complete the chart.) 1. What is the most protable number of calves to produce? 2. Why is it unprotable to produce at the highest level? (Which specic cost is causing the problem?) 3. What happens to the variable costs per calf as output increases?? Answer this and then explain how this relates to modern agriculture today? 4. What does "Marginal Cost" tell the producer? 5. What might be a xed cost for this example? What could be a likely variable cost for this