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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!

Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 9TY
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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 The 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 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 mnarginal 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! 恭 恭 恭 翡赫
Transcribed Image Text: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 The 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 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 mnarginal 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! 恭 恭 恭 翡赫
Green Gardens Berry Farms is facing some harvesting decisions in order to decide how many tons of berries 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: $20 Their main variable cost is to hire farmworkers, whom they must pay as per the region's minimum living wage laws at $15 per worker hour. They are able to coordinate production given their existing infrastructure at the following cost structure. Berry harvests are measured in Metric Tons harvested per worker hour. Green Gardens Berry Farm Quantity of Farmworker quantity in metric tons harvested) hours needed for Harvest 1. 3 2. 13 4. 14 20
Transcribed Image Text:Green Gardens Berry Farms is facing some harvesting decisions in order to decide how many tons of berries 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: $20 Their main variable cost is to hire farmworkers, whom they must pay as per the region's minimum living wage laws at $15 per worker hour. They are able to coordinate production given their existing infrastructure at the following cost structure. Berry harvests are measured in Metric Tons harvested per worker hour. Green Gardens Berry Farm Quantity of Farmworker quantity in metric tons harvested) hours needed for Harvest 1. 3 2. 13 4. 14 20
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