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.
Q *
Green-
houses/
lbs. of
Tomatoes
Expected
Wholesale
Market
Price/ Per lb.
TR
MR
Per/lb.
FC
VC
TC
$ Profit or loss
AVC Per/lb.
ATC Per/lb.
MC Per/lb.
0/0
$ .80
$ 0
1/ 25,000
$. 80
15,000
$ 37,000
2/ 50,000
$ .80
25,000
3/ 75,000
$ .80
27,000
4/ 100,000
$ .80
30,000
5/ 125,000
$ .80
$ 57,000
6/ 150,000
$ .80
48,000
7/ 175,000
$ .80
66,000
8/ 200,000
$ .80
99,000
* 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. lbs. - instead of 1, 2, 3 etc. greenhouses.
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.
|
Q * Green- houses/ lbs. of Tomatoes |
Expected Wholesale Market Price/ Per lb. |
TR |
MR Per/lb. |
FC |
VC
|
TC |
$ Profit or loss |
AVC Per/lb. |
ATC Per/lb. |
MC Per/lb. |
|
0/0 |
$ .80 |
$ 0 |
||||||||
|
1/ 25,000 |
$. 80 |
15,000 |
$ 37,000 |
|||||||
|
2/ 50,000 |
$ .80 |
25,000 |
||||||||
|
3/ 75,000 |
$ .80 |
27,000 |
||||||||
|
4/ 100,000 |
$ .80 |
30,000 |
||||||||
|
5/ 125,000 |
$ .80 |
$ 57,000 |
||||||||
|
6/ 150,000 |
$ .80 |
48,000 |
||||||||
|
7/ 175,000 |
$ .80 |
66,000 |
||||||||
|
8/ 200,000 |
$ .80 |
99,000 |
* 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. lbs. - instead of 1, 2, 3 etc. greenhouses.
