Question
Isabel runs her family's small processing plant, which takes fresh pineapples and cuts them into pineapple rings, spears, and chunks. The capital stock of the
Isabel runs her family's small processing plant, which takes fresh pineapples and cuts them into pineapple rings, spears, and chunks. The capital stock of the firm consists of three machines of various vintages, each of which can process the pineapples into any of the three different forms All of the machines are in excellent condition, and al machines can be running at the same time.
Assume that "cost of processing" includes all labor and materials, including the owner's wages. Assume further that Isabel's family signed a long term contract (20 years) with a service company to keep the machines in good repair for a fixed fee of $3, 650 per year, or $10 per day. In the diagram on the right, derive the firm's marginal cost curve.
Using the multipoint curved line drawing tool, draw the total cost curve. Properly label your cuve
At a price of $0.25, how many pineapples would the company produce?
The company would produce ______ pineapples per day. (round to nearest integer)
Total revenue would be _______. (round to nearest penny)
Total costs would be_______(round to nearest penny)
Total profits would be ______(round to nearest penny)
Maximum Total Capacity (Pineapples) per Day Machine 1 Machine 2 Machine 3 Cost of Processing per Pineapple $0.10 0.20 0.40 200 250 300 210- 180 150- 120- 90- 60 30- 0 1 2 10 11 12 N 3 4 5 6 7 8 9 Units of output (hundreds) Maximum Total Capacity (Pineapples) per Day Machine 1 Machine 2 Machine 3 Cost of Processing per Pineapple $0.10 0.20 0.40 200 250 300 210- 180 150- 120- 90- 60 30- 0 1 2 10 11 12 N 3 4 5 6 7 8 9 Units of output (hundreds)Step by Step Solution
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