Alex Lopez & Sons, Inc. - A hydroponic farm with eight greenhouses for producing

Question

Alex Lopez & Sons, Inc. - A hydroponic farm with eight greenhouses for producing tomatoes in a perfectly competitive industry competing with other greenhouse growers and field producers in the U.S and Mexico. (In the short run) Part I. Compute the values for the blank cells. $ Profit or AVC ATC MC Per/lb. Per/lb. Per/lb Expected TR MR Per/lb FC VC TC Wholesale Green- houses/ lbs. of Tomatoes Per lb 0/0 1/ 25,000 2/ 50,000 3/ 75,000 4/ 100,000 S.80 5/ 125,000 S.80 6/ 150,000S.80 7/ 175,000 S.80 8/ 200.000 S.80 Experience indicates that their yield is 25,000 lbs. of tomatoes per greenhouse. Therefore, for all per lb. computations, use thousands for Q in the formulas, e.g. 25,000, 50,000, 75,000... etc. Ibs. - instead of 1, 2, 3... etc. greenhouses loss Market Price/ S.80 S. 80 S.80 S.80 15,000 25,000 27,000 30,000 $37,000 $ 57,000 48,000 66,000 99,000

Explanation / Answer

Marginal cost MC is the additional to the total cost when one more unit is produced.

MC=TCn-TCn-1

TC is the total cost of producing nth unit and TCn-1 is the total cost of producing n-1th unit.

Marginal revenue is the addition to the total revenue whenMarginal revenue is the addition to the total revenue when one more unit of the quantity is sold.

MR=TRn-TRn-1

TR is the total revenue obtained when nth unit is sold when and TRn-1 is the total revenue when n-1th unit is sold.

the is

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