Problem
|
Yield - Tons of Hemp
|
TC
|
TFC
|
TVC
|
ATC
|
AVC
|
AFC
|
MC
|
|
0
|
100
|
100
|
0
|
-
|
-
|
-
|
-
|
|
1
|
150
|
100
|
50
|
150
|
50
|
100
|
50
|
|
2
|
210
|
100
|
110
|
105
|
55
|
50
|
60
|
|
3
|
260
|
100
|
160
|
86.67
|
53.33
|
33.33
|
50
|
|
4
|
300
|
100
|
200
|
75
|
50
|
25
|
40
|
|
5
|
330
|
100
|
230
|
66
|
46
|
20
|
30
|
|
6
|
350
|
100
|
250
|
58.33
|
41.67
|
16.67
|
20
|
|
7
|
360
|
100
|
260
|
51.43
|
37.14
|
14.29
|
10
|
A. If the market price is $30 per ton, what is the profit maximizing level of output for this firm? Explain using marginal analysis.
B. Continuing to assume the market price is $30 per ton, what is the total value of profits the firm can earn?