AG BM 101 Study Guide - Sweet Potato, Average Variable Cost, Agricultural Extension

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2 Apr 2014
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09: suppose you manage a mixed vegetable farm and just finished negotiating a supply contract with. Beech-nut baby foods to buy all your tender golden sweet potatoes at a specified price of . 00 per pound (py). One of your first tasks is to decide how many pounds of fertilizer to apply to each acre in order to maximize your profits under the sweet potato contract. On following table, fill in the values for total fixed costs (tfc), total variable costs (tvc), total costs (tc), average fixed costs (afc), average variable costs (avc), average total costs (atc), and marginal cost (mc). Finally, add to the table the marginal revenue (mr), which equals the output price (py) specified in the beech-nut contract. 125 pounds of fertilizer and 216 pounds of sweet potatoes per acre. Profit=total revenue-total cost= (. 00*216)-=-=. 00 per acre (d) if the beech-nut price for sweet potatoes were instead . 50 per pound, what would be the profit-

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