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The table below is for an apple orchard and includes the firm's fixed costs and the number of workers needed to produce various quantities of
The table below is for an apple orchard and includes the firm's fixed costs and the number of workers needed to produce various quantities of apples in a day. Each worker at the orchard is paid a wage of $300 a day.
1. [25pt] The table below is for an apple orchard and includes the firm's fixed costs and the number of workers needed to produce various quantities of apples in a day. Each worker at the orchard is paid a wage of $300 a day. a. [12pt] Complete the table. Quantity Workers Variable Marginal Marginal Total Average Fixed Average Average of Wage Fixed Variable Total Needed Cost Cost Product Cost Cos Apples Cost Cost Cost 0 0 $300 $0 1000 1000 1,000 3 $300 2,000 4 $300 3,000 6 $300 4,000 9 $300 5,000 13 $300 b. [10pt] Suppose the market price of apples is $1.00. At the market price, this firm can sell as many apples as it can produce. Complete the following table based upon this information. Quantity of Total Revenue Marginal Accounting Apples Total Cost Revenue Marginal Cost Profit 0 1,000 2,000 3,000 4,000 5,000 c. [3pt] Assuming the apple orchard can only produce the exact quantities of apples that are in this table. What is the profit maximizing quantity of applesStep by Step Solution
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