Determining the total variable costs

Assignment Help Business Management
Reference no: EM131286004

Sam is one of many potato growers who sell potatoes to a large food-processing plant. It is safe to assume that potatoes are sold in perfectly competitive markets. The price of a bushel of potatoes is $4 and Sam sells 100 bushels at that price. He has $250 of fixed cost. Sam figures if he produces one more bushel of potatoes, his total variable costs will increase from $175 to $180. Should Sam produce any more potatoes at the $4 price? Explain. Show how you came to your answer.

Reference no: EM131286004

Questions Cloud

Discuss about case and answer the following questions : Complete Critical Thinking Exercise ­ Top Five Regrets People Say on Their Deathbeds by Jane McGonigal (Game Designer) ­ Answer one or more of the following Critical Thinking Questions.
Check given letter that the letter is clear and professional : Given is  the letter written to Vice President and CEO of company.- Check the given letter that the letter is clear, concise and professional.
Major reasons for difference : How do retirement patterns for men and women differ? What are the major reasons for this difference?
Explain the method of environmental impact assessment : Identify and explain the main factors affecting sustainable energy strategies and policies.
Determining the total variable costs : It is safe to assume that potatoes are sold in perfectly competitive markets. The price of a bushel of potatoes is $4 and Sam sells 100 bushels at that price. He has $250 of fixed cost. Sam figures if he produces one more bushel of potatoes, his t..
What is the manufacturers expansion path : What is the average and marginal cost of gumball production - Graph the average and marginal cost curves for gumballs assuming v=4, w=5.
Farmer operating a local farm : Suppose that you are a farmer operating a local farm. You plant fifty seeds and watch them grow into stalks of wheat with plump wheat berries. The next year, you one hundred seeds on your plot of land and you harvest double the amount of wheat.
Why is trust so important to customer-provider relationship : Why is trust so important to the customer-provider relationship? How do recalls impact customer trust in an organization or industry? How have mobile and other technologies impacted customer loyalty?
Representing the natural gas market : The following are the demand-supply equations representing the natural gas market.

Reviews

Write a Review

Business Management Questions & Answers

  Recent dividend paid by the company

The dividend yield of a stock is 8 percent. If the market price of the stock is $18 per share and its dividends have been growing at a constant rate of 6%, what was the most recent dividend paid by the company?

  Leadership and lack of communication in the workplace

Provide three additional references related to your Doctoral Study topic in annotated bibliography format and synthesize these three references into a component of the doctoral study rubric (ex. Nature of study, literature review, etc.) Proposal t..

  Among the five largest air carriers

Problem: Market share is among the five largest air carriers in the United States as of 2001, as compared to 1978?

  Leadership styles impede the change initiative

How did these leadership styles promote or impede the change initiative? Use the below bullets when describing.

  Describe the current state of selected company

Create an MS PowerPoint Presentation in which you describe the current state of your selected company's supply chain and an identified process.

  Product and country for a global business venture

Select a product and a country for a global business venture. Conduct a regional, country, and product analyses for your new global venture. Prepare a minimum 1,050 word paper discussing the following:

  What would be the amount of the firms total revenue

At what price should this firm sell its product? What would be the amount of the firm's total revenue at the quantity and price identified in the prior two questions?

  About prepayment penalties

Which one of the following is TRUE about Prepayment penalties?

  Key issue for organisations

Workforce engagement has become a key issue for organisations, and of interest to both researchers and practitioners. What factorscontribute to workforce engagement and how can an organization's approach to issues such as communication, leadership..

  Cloud-based file management tool

Describe how you can share a file or folder as you collaborate with team-mates. Evaluate and prioritize any security issue related to using cloud-based file management tool?

  Is the related lease finance or operating lease

Is the related lease Finance or operating lease and how would Lion Nathan account for any profit or loss on the sale of the pubs?

  Explain what are the four categories of business planning

Explain what are the four categories of business planning and describe each of them. How does the level of management fit into the preferred process of planning?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd