develpr586mr

A producer is producing tomatoes in a perfectly competitive market. In year 1 they sell 4,000 bushels of tomatoes at $12 each. In year 2 they sell 4,800 at $13 each. In year 2 her average revenue is ____ and her Marginal revenue is ____ a) 13/1 b) 12/1 c) 13/13 d) 12.50/12.50

Practice Problem 1. The following table reports the marginal product of the first 16 workers a tomato grower could hire, that is, it tells us how many extra tomatoes each worker could grow. The tomato grower has monthly fixed costs of $50. The monthly wage of each worker is also $50. The tomato grower participates in a perfectly competitive market where there are currently 1000 identical growers. They sell boxes of tomatoes which contain 1500 tomatoes each and currently the market price of these boxes is $200.

Worker

MP

Worker

MP

1

400

9

500

2

500

10

400

3

600

11

350

4

700

12

300

5

800

13

275

6

800

14

250

7

700

15

225

8

600

16

100

Task 1.1: Use the information provided to fill the following table.

# workers needed

TFC

TVC

TC

MC

MR

0

------------------------------------

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1

2

3

4

5