N. P. Maplewood is a farmer with one tractor. The amount of land will determine how much she can harvest.

N. P. Maplewood has just come to the realization that her father will not let her use his land for free. Further, her parents have informed her that she must pay rent to use the tractor. N. P. must pay her father $20 per acre to grow soybeans and she must pay her parents $100 for rent to be allowed to use the tractor. N.P has received her first orders for soybeans, some tofu factory in China. We will explore profit maximization in this section. The current price for soybeans is $10.

Units of the Total Fixed Variable Total Total Variable Factor Product Costs Costs Costs Total Revenue (Labor) Profit (TP) (FC) (VC) (TC) (TR) O 100 0 100 0 -100 2 100 20 120 20 -100 7 100 40 140 70 -70 15 100 60 160 150 -10 25 100 80 180 250 70 5 40 100 100 200 400 200 50 100 120 220 500 280 7 58 100 140 240 580 340 63 100 160 260 630 370 9 65 100 180 280 650 370 10 66 100 200 300 660 360Graph the Total Cost and the Total Revenue. Show the profit maximizing output. 300 5 10 15 20 25 30 35 40 200 100 Assume that the price of soybeans has increased. Which curve will be affected? 6. Draw a new total revenue curve to illustrate an increase in price. Find the new profit maximizing point. 7. Assume that N.P parents realize that she is not frequently changing oil in the tractor and the tractor is depreaciating. They decide to increase the rent on the tractor. Which curve will be affected? 8. Draw a new total cost curve to illustrate an increase in costs. Find the new profit maximizing point. 9. Provide a mathematical definition for marginal cost