Suppose an avocado farm has cost: C = 0.002q cubed + 22q + 750, (where q is measured in bushels) and the rental cost of land is zero so the average cost curve includes only the farm's costs of labor, capital, materials, and energylong dashnot land. Marginal cost is: MC = 0.006q2 + 22. This cost structure is representative of all firms in this industry. The market price per bushel of avocados is $38. The firm's profit maximizing output (rounded to one decimal place) is A. 20.0 units. B. 79.6 units. C. 51.6 units. D. 89.4 units. In the long-run, we would expect the market price of avocados to: A. decrease. B. remain unchanged. C. increase. D. equal zero.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose an avocado farm has cost: C = 0.002q cubed + 22q + 750, (where q is measured in bushels) and the rental cost of land is zero so the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Mullineaux Corporation has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt. Its cost of equity is 12 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 5 percent.
Answers (1)
Which of the following is NOT included when calculating gross income? Paychecks Alimony Investment income Scholarships
Answers (1)
After plotting the demands for four periods
Answers (1)
All electric-powered automobiles such as the chevy spark are in which stage of their product life cycle
Answers (1)
What is a living will? legal document that gives directives on how your things should be given to beneficiaries when you die legal document that begins with "this is my last will and testament" legal document that states end of life medical care
Answers (1)
New Questions in Business
Adobe Systems Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013.
Answers (1)
A Trek Cycles manufactures and sells bicycles to retailers. The X-1 model sells for $500 and has per-unit variable costs of $300 associated with its production. The company has fixed expenses of $30,000 per month.
Answers (1)
A firm supplies aircraft engines to the government and to private firms. It must decide between two mutually exclusive contracts. If it contracts with a private firm, its profit will be $2 million, $1 million, or - $1 million with probabilities. 25,.
Answers (1)
Important business data that is not known to the public is considered what type of information?
Answers (1)
On january 1, applied technologies corporation (atc) issued $510,000 in bonds that mature in 10 years. the bonds have a stated interest rate of 8 percent. when the bonds were issued, the market interest rate was 8 percent.
Answers (1)