Coffee Bean Production Total Cost (in pounds) (in $) 0 1000 100 1150 200 1500 300 2050 400 2800 500 3750 600 4900 700 6250 800 7800 900 9550 1000 11500 (a) Using Excell, draw the cost curve and obtain the cost function. (NOTE: When reporting the cost function, use y for the output variable and c for the cost variable.) (b) curve (c) (d) Obtain the formula for the MC, MC = c'(y), and draw the MC using Excell). What is the shut-down price for this technology? Assume that the sales price of coffee beans is $10 per pound. Draw the profit function, л(y) (either by hand or using Excell). Find the optimal amount of coffee beans for the farm to produce and sell at the price of $10. How much money does the farm make in (maximum) profit?
Coffee Bean Production Total Cost (in pounds) (in $) 0 1000 100 1150 200 1500 300 2050 400 2800 500 3750 600 4900 700 6250 800 7800 900 9550 1000 11500 (a) Using Excell, draw the cost curve and obtain the cost function. (NOTE: When reporting the cost function, use y for the output variable and c for the cost variable.) (b) curve (c) (d) Obtain the formula for the MC, MC = c'(y), and draw the MC using Excell). What is the shut-down price for this technology? Assume that the sales price of coffee beans is $10 per pound. Draw the profit function, л(y) (either by hand or using Excell). Find the optimal amount of coffee beans for the farm to produce and sell at the price of $10. How much money does the farm make in (maximum) profit?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter5: Buying The Necessities
Section: Chapter Questions
Problem 20AA
Related questions
Question
Transcribed Image Text:Coffee Bean Production
Total Cost
(in pounds)
(in $)
0
1000
100
1150
200
1500
300
2050
400
2800
500
3750
600
4900
700
6250
800
7800
900
9550
1000
11500
Transcribed Image Text:(a)
Using Excell, draw the cost curve and obtain the cost function.
(NOTE: When reporting the cost function, use y for the output variable
and c for the cost variable.)
(b)
curve
(c)
(d)
Obtain the formula for the MC, MC =
c'(y), and draw the MC
using Excell).
What is the shut-down price for this technology?
Assume that the sales price of coffee beans is $10 per pound.
Draw the profit function, л(y) (either by hand or using Excell).
Find the optimal amount of coffee beans for the farm to produce
and sell at the price of $10. How much money does the farm make in
(maximum) profit?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning