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Agricultural Economics 3rd Edition by Evan Drummond, John Goodwin
Edition 3ISBN: 978-0136071921Agricultural Economics 3rd Edition by Evan Drummond, John Goodwin
Edition 3ISBN: 978-0136071921 Exercise 1
The following questions refer to the production function in the following table. For all questions, the price of the input is $11 and the price of the product (or output) is $4. Fixed costs are $30. 
a. What is the value of the following at 8 units of the variable input?
TP___________
AVC___________
TVC______________
b. The profit-maximizing firm would use __________ units of the variable input.
c. The marginal cost of the fifth unit of the variable input is __________
d. If the firm used 10 units of the variable input, profits would be $______
e. If the variable input were free the firm would produce ____ units.
a. What is the value of the following at 8 units of the variable input?
TP___________
AVC___________
TVC______________
b. The profit-maximizing firm would use __________ units of the variable input.
c. The marginal cost of the fifth unit of the variable input is __________
d. If the firm used 10 units of the variable input, profits would be $______
e. If the variable input were free the firm would produce ____ units.
Explanation
Verified
Verified
Production function is a mathematical fu...
Agricultural Economics 3rd Edition by Evan Drummond, John Goodwin
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