The following table presents the expected costs, revenue, and profit schedules for the Tucker Tomato Farm. Refer to the table to answer the questions that follow. Output 0 1 2 3 4 5 6 7 8 9 10 Total Cost ($ Per Marginal Ton) Cost $500 $600 $650 $750 $900 O True O False $1,100 $1,350 $1,750 $2,300 $3,000 $3,900 $100 $50 $100 $150 $200 $250 $400 $550 $700 $900 Average Variable Cost $100 $75 $83 $100 $120 $142 $179 $225 $278 $340 Average Profit at Total $250 per Cost ton $600 $325 $250 $225 $220 $225 $250 $288 $333 $390 -$500 -$350 -$150 $0 $100 $150 $150 $0 -$300 -$750 Profit at $200 per ton -$500 -$400 -$250 -$150 -$100 -$100 -$150 -$350 -$700 -$1,200 -$1,400 -$1,900 Profit at $150 per ton -$500 -$450 -$350 -$300 -$300 -$350 -$450 -$700 -$1,100 -$1,650 -$2,400 In order to maximize profits, when the price of tomatoes is $250, the Tuckers will produce tons of tomatoes and make a of In order to maximize profits, when the price of tomatoes is $200 the Tuckers will produce tons of tomatoes and make a of Assuming they choose produce, when the price of tomatoes is $150 the Tuckers will produce tons of tomatoes and make a of $ True or False: When the price of tomatoes is $150 per ton, the Tuckers would prefer to shutdown rather than produce in the short run.
The following table presents the expected costs, revenue, and profit schedules for the Tucker Tomato Farm. Refer to the table to answer the questions that follow. Output 0 1 2 3 4 5 6 7 8 9 10 Total Cost ($ Per Marginal Ton) Cost $500 $600 $650 $750 $900 O True O False $1,100 $1,350 $1,750 $2,300 $3,000 $3,900 $100 $50 $100 $150 $200 $250 $400 $550 $700 $900 Average Variable Cost $100 $75 $83 $100 $120 $142 $179 $225 $278 $340 Average Profit at Total $250 per Cost ton $600 $325 $250 $225 $220 $225 $250 $288 $333 $390 -$500 -$350 -$150 $0 $100 $150 $150 $0 -$300 -$750 Profit at $200 per ton -$500 -$400 -$250 -$150 -$100 -$100 -$150 -$350 -$700 -$1,200 -$1,400 -$1,900 Profit at $150 per ton -$500 -$450 -$350 -$300 -$300 -$350 -$450 -$700 -$1,100 -$1,650 -$2,400 In order to maximize profits, when the price of tomatoes is $250, the Tuckers will produce tons of tomatoes and make a of In order to maximize profits, when the price of tomatoes is $200 the Tuckers will produce tons of tomatoes and make a of Assuming they choose produce, when the price of tomatoes is $150 the Tuckers will produce tons of tomatoes and make a of $ True or False: When the price of tomatoes is $150 per ton, the Tuckers would prefer to shutdown rather than produce in the short run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following table presents the expected costs, revenue, and profit schedules for the Tucker Tomato
Farm.
Refer to the table to answer the questions that follow.
Output
0
HEMATO
1
2
3
4
5
6
7
8
9
10
Total
Cost
($ Per Marginal
Ton)
Cost
$500
$600
$650
$750
$900
$1,100
$1,350
$1,750
$2,300
$3,000
$3,900
$100
$50
True
False
$100
$150
$200
$250
$400
$550
$700
$900
Average
Variable
Cost
$100
$75
$83
$100
$120
$142
$179
$225
$278
$340
Average
Total
Cost
$600
$325
$250
$225
$220
$225
$250
$288
$333
$390
Profit at
$250 per
ton
-$500
-$350
- $150
$0
$100
$150
$150
$0
-$300
- $750
-$1,400
Profit at
$200 per
ton
-$500
-$400
-$250
-$150
-$100
-$100
-$150
-$350
-$700
-$1,200
- $1,900
Profit at
$150 per
ton
-$500
-$450
-$350
-$300
-$300
-$350
-$450
-$700
-$1,100
-$1,650
-$2,400
In order to maximize profits, when the price of tomatoes is $250, the Tuckers will produce
tons of tomatoes and make a
of
In order to maximize profits, when the price of tomatoes is $200 the Tuckers will produce
tons of tomatoes and make a
of
Assuming they choose produce, when the price of tomatoes is $150 the Tuckers will produce
tons of tomatoes and make a
of
True or False: When the price of tomatoes is $150 per ton, the Tuckers would prefer to shutdown rather
than produce in the short run.
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