4. The Diversified Vegetable Company grows two crops, tomatoes and zucchini. The firm is a price-taking seller. The price of a bushel of tomatoes is $20, while the price of a bushel of zucchini is $30. The firm uses the same land and the same workers to raise the two crops, and its total cost for the two crops is 5T^2 + 6Z^2 + TZ, where T and Z are the respective quantities of tomatoes and zucchini. Find the following: A. The profit maximizing level of production of tomatoes and zucchini. B. The maximized profits.

4. The Diversified Vegetable Company grows two crops, tomatoes and zucchini. The firm is a price-taking seller. The price of a bushel of tomatoes is $20, while the price of a bushel of zucchini is $30. The firm uses the same land and the same workers to raise the two crops, and its total cost for the two crops is 5T^2 + 6Z^2 + TZ, where T and Z are the respective quantities of tomatoes and zucchini. Find the following: A. The profit maximizing level of production of tomatoes and zucchini. B. The maximized profits.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.2: Production And Costs

Problem 2QQ

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2. A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer these questions:a. Identify the fixed and variable inputs.b. What are the firm's fixed costs?c. What is the variable cost of producing 475 units of output?d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?f. Over what range of the variable input usage do increase marginal returns exist?8. Over what range of the variable input usage do decreasing marginal returns exist?h. Over what range of input usage do negative marginal returns exist?
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Suppose a factory's marginal cost has a minimum value of $2; its average variable cost has a minimum value of $5; and its average total cost has a minimum value of $8. Given this information, the factory should exit at any price below any price below and shut down at Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. $5; $8 $8; $5 $2; $5 d $5; $2 $2; $8 e f $8; $2
4. The Diversified Vegetable Company grows two crops, tomatoes and zucchini. The firm is a price-taking seller. The price of a bushel of tomatoes is $20, while the price of a bushel of zucchini is $30. The firm uses the same land and the same workers to raise the two crops, and its total cost for the two crops is 5XT2 + 6XZ2 + XTXZ, where XT and XZ are the respective quantities of tomatoes and zucchini. Find the following: A. The profit maximizing level of production of tomatoes and zucchini. B. The maximized profits.