Make table of total product and average product

Assignment Help Macroeconomics

Reference no: EM1316329

Suppose you are provided with the following production relationships, where the input is fertilizer (pounds per acre) and the output is rice (cwt per acre). The price of rice is $9.50 per cwt and the price of fertilizer is $0.12 per pound.

Fertilizer (pounds per acre)	Soybeans (cwt per acre)
0	0
50	8
100	18
150	32
200	48
250	58
300	65
350	70
400	73
450	75
500	76
550	72
600	64

A. Build a table showing the TPP, APP, MPP, TVP, AVP, MVP, MFC and Total Input Cost at each level of inputs used (Note the increase in fertilizer is in 50 pound increments, thus you need to be careful when calculating MPP and MVP.)

B. Using graph paper, please graph AVP, MVP, and MFC

C. On the graph in B, please indicate the three stages of production.

D. What is the level of fertilizer that maximizes profits? How do you know?

E. How much fertilizer would you use (to maximize profits) if the price of fertilizer increased to $0.30 cents per pound (and the price of rice is $9.50 per cwt)? Suppose the selling price of rice increases to $5.50 per cwt (and the price of fertilizer is $0.12 per pound). How much fertilizer would you then use to maximize profits?

Reference no: EM1316329

Questions Cloud

There is no proof the new policy is more effective : There is no proof the new policy is more effective, but we cannot finish the policy has no effect on smog. Interpretation of P-value for the given context.

What are the mean and standard deviation of the sample : ACT scores of high school seniors. The scores of high school seniors on the ACT college entrance examination in 2003 had mean JL = 20.80 and standard deviation (J = 4.80. The distribution of scores is only roughly Normal.

Calculate the salary at the end of 24th year from now : Calculate the salary at the end of 24th year from now from the facts and what will 80% of your last year's salary be

Purpose a time line presenting after-tax operating cash flow : Effect of capital structure on companies value per share - purpose a time line presenting the after-tax operating cash flows

Make table of total product and average product : Suppose you are provided with the following production relationships, where the input is fertilizer (pounds per acre) and the output is rice (cwt per acre). Using graph paper, please graph AVP, MVP, and MFC

Find the unit price and profit functions : Find the unit price and profit functions.

Trend analysis of failure probability : Perform the trend analysis of Pf with incrementally increasing number of the simulation cycles, and calculate the statistical uncertainty in the estimate expressed as the coefficient of variation.

Find the probability for the sample proportion : The ideal number of children. "What do you think is the ideal number of children for a family to have?" A Gallup Poll asked this question of 1016 arbitrarily chosen adults. Almost half (49%) thought two children was idea suppose that p = 0.49 is e..

Evaluation of various capital structure mix : Evaluation of various capital structure mix - evaluate total value of equity, and shareholders care about value per share

User Account

All Pages