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Use the figure below to answer the following questions: Dollars per sack (thousands) $380 304 283 225 214 MC Demand ATC AVC 02468 10
Use the figure below to answer the following questions: Dollars per sack (thousands) $380 304 283 225 214 MC Demand ATC AVC 02468 10 12 14 16 18 20 22 24 26 Quantity of coffee (sacks of 60 kilos) . What is the profit maximize quantity given the above information? (1 mark) At this quantity, how much is total cost, total revenue, and total profit? (3 marks) How much profit is forgone if the farmer only produces a quantity of 6? (1 mark) . If the farmer is making profit, what is likely to change in the supply and demand of the entire market? (1mark) What impact would this have Price and Quantity? (1 mark) and how would this affect the farmer's future profits? (1 mark)
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