To earn extra money in the summer, you grow tomatoes and sell them at a local farmers' market for $0.30 per pound. By adding compost to your garden, you can increase your yield as shown in the accompanying table. Instructions: Determine the number of additional pounds of tomatoes you are able to grow by using each additional pound of compost. Then compute the additional revenue (or marginal benefit) from each additional pound of compost. Enter your responses in the table below, rounding the marginal benefit of each pound of compost to the nearest penny (two decimal places). Additional Additional revenue (or marginal benefit) Pounds of Pounds of pounds of compost tomatoes tomatoes 100.0 1 120.0 $ 2 125.0 $ 3 128.0 $ 4 130.0 $ 131.0 $ 6 131.5 $ If compost costs $0.50 per pound and your goal is to make as much profit as possible, how many pounds of compost should you add Instructions: Enter your answer as a whole number. You should add pounds of compost.
To earn extra money in the summer, you grow tomatoes and sell them at a local farmers' market for $0.30 per pound. By adding compost to your garden, you can increase your yield as shown in the accompanying table. Instructions: Determine the number of additional pounds of tomatoes you are able to grow by using each additional pound of compost. Then compute the additional revenue (or marginal benefit) from each additional pound of compost. Enter your responses in the table below, rounding the marginal benefit of each pound of compost to the nearest penny (two decimal places). Additional Additional revenue (or marginal benefit) Pounds of Pounds of pounds of compost tomatoes tomatoes 100.0 1 120.0 $ 2 125.0 $ 3 128.0 $ 4 130.0 $ 131.0 $ 6 131.5 $ If compost costs $0.50 per pound and your goal is to make as much profit as possible, how many pounds of compost should you add Instructions: Enter your answer as a whole number. You should add pounds of compost.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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How do I calculate this?
Transcribed Image Text:To earn extra money in the summer, you grow tomatoes and sell them at a local farmers' market for $0.30 per pound. By adding
compost to your garden, you can increase your yield as shown in the accompanying table.
Instructions: Determine the number of additional pounds of tomatoes you are able to grow by using each additional pound of
compost. Then compute the additional revenue (or marginal benefit) from each additional pound of compost. Enter your responses in
the table below, rounding the marginal benefit of each pound of compost to the nearest penny (two decimal places).
Additional
Additional
revenue (or
marginal
benefit)
Pounds of
Pounds of
pounds of
compost
tomatoes
tomatoes
100.0
1
120.0
2$
2
125.0
$
128.0
$
4
130.0
$
131.0
$
131.5
If compost costs $0.50 per pound and your goal is to make as much profit as possible, how many pounds of compost should you add?
Instructions: Enter your answer as a whole number.
You should add
pounds of compost.
Expert Solution
Step 1
To calculate Additional pounds of tomatoes, the formula used is :
Additional Tomatoes = Pound of Tomatoes(n) - Pound of Tomatoes(n-1)
To calculate Additional Revenue, the formula used is :
Additional Revenue = Additional Pounds of Tomatoes x Price of Tomatoes per pound
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