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Farmer Dorr figures that her fixed costs are $2,000, and the relevant portion of her total cost curve is:
Thousands of Total Cost
Bushels (in thousands of dollars)
10 10.70
11 11.45
12 12.25
13 13.10
14 14.00
15 15.00
16 16.10
17 17.32
18 18.75
19 20.30
a) Calculate Farmer Dorr's schedules of average cost, marginal cost, total variable cost, and average variable cost.
b) If Farmer Dorr is a perfect competitor, what level of output should she produce, if the market price is:
(i) $1.50 (iii) $0.92
(ii) $1.00 (iv) $0.82
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Please kindly post some problems along with solutions so it is easy to understand..I am quite satisfied by the per-forma you have mentioned.. THANK YOU.
standard hours = 5000 standard wages = Rs.3/hr actual hours worked = 5600 hrs actual wages paid = 17920
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