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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
company XY produces a single product ''XY1" selling price per unit 15, direct materials per unit 4 direct labour per unit 3 variable overhead per unit 2 fixed overhead incurred 12
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