10. Critical analysis Q15 2 STEP: 1 of 2 The following table presents the expect
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Question
10. Critical analysis Q15 2 STEP: 1 of 2 The following table presents the expected cost and revenue data for the Tucker Tomato Farm. The Tuckers produce tomatoes in a greenhouse and sell them wholesale in a price taker market. Complete the table by calculating the firm's marginal cost, average variable cost, average total cost, and profit schedules. Round your answers to the nearest whole dollar figure. For example, round $316.66 to $317, or $321.42 to $321 Total Output Cost $ Per Average Variable Cost Average Total Cost Profit at $250 per ton Profit at $200 per ton Profit at $150 per ton (tons) Ton) Marginal Cost $500 $600 $650 $750 $900 $1,100 $1,350 $1,750 $2,300 $3,000 $3,900 $500 $500 $500 2 4 6 8 10 Grade Step 1 TOTAL SCORE: 0/5 (to complete this step and unlock the next step)Explanation / Answer
Working notes:
(1) Marginal cost (MC) = Change in Total Cost (TC) / Change in Output (Q)
(2) When Q = 0, TC = $500 (Which is the Fixed cost, FC).
Total variable cost (TVC) = TC - FC = TC - $500
Average variable cost (AVC) = TVC / Q = (TC - $500) / Q
(3) Average total cost (ATC) = TC / Q
(4) Profit = (Price x Q) - TC
Therefore filled-in table as follows.
Q TC MC AVC ATC Profit @ P = $250 Profit @ P = $200 Profit @ P = $150 0 500 -500 -500 -500 100 1 600 100 600 -350 -400 -450 50 2 650 75 325 -150 -250 -350 100 3 750 83 250 0 -150 -300 150 4 900 100 225 100 -100 -300 200 5 1,100 120 220 150 -100 -350 250 6 1,350 142 225 150 -150 -450 400 7 1,750 179 250 0 -350 -700 550 8 2,300 225 288 -300 -700 -1100 700 9 3,000 278 333 -750 -1200 -1650 900 10 3,900 340 390 -1400 -1900 -2400Related Questions
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