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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
a company has the budget for manufacturing overhead based on direct labor hours. budgeting at 10,000 direct labor hours are as follows. Variable costs= 160000 Fixed Costs
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