Tomatoes grow well in Kansas. Why do the people of Kansas buy most of their tomatoes from Florida, Mexico, and California?
Tomatoes grow well in Kansas. Why do the people of Kansas buy most of their tomatoes from Florida, Mexico, and California?
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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.
