Question

When a Saskatchewan farmer brings q = 6 pounds of sunflower seeds to the market, a supplier will pay p = $9. When the farmer

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Answer #1

Answer

p = 6 + 0.5 * q

Calculations:

It is given that

case 1 case 2
p $     9 $   11
q         6       10

Now,

Variable cost per hour = Change in price/ change in quantity
Variable factor per pound = ($11-$9)/(10-6)
Variable factor per pound = $2/4
Variable factor per pound = $0.5
Fixed factor= Total price- Variable price
Fixed factor = $11-(0.5*10)
Fixed factor = $6

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