Green Gardens Berry Farms is facing some harvesting decisions in order to decide how many ton berries to harvest and supply to local markets. They face the following situation: Their FIXED COSTS in terms of existing harvesting tools, land rents, etc. is: $20 Their main variable cost is to hire farmworkers, whom they must pay as per the region's minimum living wage laws at $15 per worker hour. They are able to coordinate production given their existing infrastructure at the following cost structure. Berry harvests are measured in Metric Tons harvested per worker hour. Green Gardens Berry Farm Quantity of Farmworker (quantity in metric tons harvested) hours needed for Harvest 1 13 12 13 14 14 20 2)

Using Techniques Units of Variable Inputs Produce K 1 unit of output A 8 B 4 12 2 units of output A 14 12 B 20 3 units of output A 16 12 B 12 22 1) Assume that the relevant time period is the short run. Assuming the price of labor (L) is RM5 per unit and the price of capital (K) is RM10 per unit, the average variable cost of producing two units of output is, -(1M) Working calculation: 20 Assume the price of labor (4) is RM5 per unit, the price of capital (K) is RM10 per unit, and that firms attempt to minimize costs. The marginal cost of producing the third unit of output is - (1M) Working calculation:

In this Assignment, you will define and calculate the remaining six major cost elements of a business, when given the Total Costs and the Quantity Produced, as well as to use the computed costs to determine a minimum cost output level for that business. In addition, you will compute both the break-even price and the shut-down price for a hypothetical business in a perfectly competitive market, and determine if that business would incur an economic profit at various market prices, and should the firm continue to produce at each of those price levels. Questions Table 2.a. shows an LED light bulb manufacturer’s total cost of producing LED light bulbs. Table 2.a. Cases of LED light bulbs produced in an hour Total Cost 0 $4,500 10 $4,900 20 $5,100 30 $5,300 40 $5,400 50 $5,700 60 $6,700 70 $7,900 80 $9,700 90 $11,800 1.     What is this manufacturer’s fixed cost? Explain why. 2.     Assuming that you only know…

In this Assignment, you will define and calculate the remaining six major cost elements of a business, when given the Total Costs and the Quantity Produced, as well as to use the computed costs to determine a minimum cost output level for that business. In addition, you will compute both the break-even price and the shut-down price for a hypothetical business in a perfectly competitive market, and determine if that business would incur an economic profit at various market prices, and should the firm continue to produce at each of those price levels. Questions Table 2.a. shows an LED light bulb manufacturer’s total cost of producing LED light bulbs. Table 2.a. Cases of LED light bulbs produced in an hour Total Cost 0 $4,500 10 $4,900 20 $5,100 30 $5,300 40 $5,400 50 $5,700 60 $6,700 70 $7,900 80 $9,700 90 $11,800 1.     What is this manufacturer’s fixed cost? Explain why. 2.     Assuming that you only know…