The MARKET PRICE for berries is currently at $75 per metric ton.Green Berry farms is currently looking at harvesting 2 metric tons. What should they do?O The total cost of berries is too high, they should REDUCE productionThe marginal cost of berries at this level is lower than price, and they should EXPAND production.O They are making a profit! They should maintaln their production level!Question 3The market price is still $75 per metric ton. So Green Berry farm thought they should increaseproduction to 5 metric tons. Is this a good decision?O No. The mnarginal cost at this production level is higher than price. They would be better off cutting backproduction in order to maximize profits.O Yes, they are making a profit!恭恭恭翡赫 Green Gardens Berry Farms is facing some harvesting decisions in order to decide how many tons ofberries 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: $20Their main variable cost is to hire farmworkers, whom they must pay as per the region's minimumliving wage laws at $15 per worker hour.They are able to coordinate production given their existing infrastructure at the following coststructure. Berry harvests are measured in Metric Tons harvested per worker hour.Green Gardens Berry FarmQuantity of Farmworkerquantity in metric tons harvested) hours needed for Harvest1.32.134.1420

Green Gardens Berry farms (quantity in metric tons) Quantity of farmworker TVC TFC TC MC 1 3 45 20…

The MARKET PRICE for berries is currently at $75 per metric ton. Green Berry farms is currently looking at harvesting 2 metric tons. What should they do? O The total cost of berries is too high, they should REDUCE production oThe marginal cost of berries at this level is lower than price, and they should EXPAND production. O They are making a profit! They should maintain their production level! Question 3 The market price is still $75 per metric ton. So Green Berry farm thought they should increase production to 5 metric tons. Is this a good decision? O No. The marginal cost at this production level is higher than price. They would be better off cutting back production in order to maximize profits. O Yes, they are making a profit!

The MARKET PRICE for berries is currently at $75 per metric ton. Green Berry farms is currently looking at harvesting 2 metric tons. What should they do? O The total cost of berries is too high, they should REDUCE production oThe marginal cost of berries at this level is lower than price, and they should EXPAND production. O They are making a profit! They should maintain their production level! Question 3 The market price is still $75 per metric ton. So Green Berry farm thought they should increase production to 5 metric tons. Is this a good decision? O No. The marginal cost at this production level is higher than price. They would be better off cutting back production in order to maximize profits. O Yes, they are making a profit!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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