Question

Production and cost information for Johnson's Farms, producing Yellow Squash, using hourly labor with fixed quantities of land, machinery and other resources. TFC TVC TC AFC AVC ATC MC TR-TC Profit TR MR 100.0 Labor Units of Squash X Y or TPP 0 0 10 2 25 3 45 4 61 5 72 6 81 7 87 8 90 9 92 10 93 11 92 12 88 50.0 78.0 91.0 348.0 4.0 1) Use the information above to complete the table. Calculate all answers to two decimal places. 2) Fill in the following information: a. What is the price per unit of labor b. What is the price per unit of squash c. The maximum profit level of $ d. The optimum number of workers to use is will be achieved at an output of units of squash.

Answer 1

unit of AVC TO MC TVC AFC TFC TR MR labor pooFit Suosh - o o o 50 50 solution 50 o o 4 5 oh 63 3 50 El 24 10 4 chool 26 4 1b. 15 45 39 0.81 4 142 3 102 173 u 19 115 GI 324 196 h て七 207 8t 50 76 2 0.87 100 50 89 0.87 0.65 180 50 52 0.82 10.85 244 50 0.69 0.90 11.18 288 128 10.620.96 11.94 2:17 0.5811.05 348 191 360 10.56 11.16 154 10.5u/1.27 16.50 368 50 117 167 113.0 372 1.90 50 180' 16:54 130 50 1.55 143 10.54 193 206 10.57/ 1:77 156 50 81 50 206 1.4.33 h 7 87 50 207 h 50 104 90 ។ 192 175 898 9 92 10 obl 93 ese - 11 92 12 88

Qa (a) Now, calculating the poice per unit labor (6-labours OF TVC -78 7- Тус b) Labours =91) Nowi calculating paicelonie of seush $4 is TR - 100 if 25 unit squash 87 unit seuash TR - 348 if of (C) NOW, calculating the maximum poofit level $207 will be achieleed output unit of squash OF at Qn d. Noco, optinun nomber of labour to use