Suppose an avocado farm has cost C= 0.004q + 28q + 1250, (where q is measured in bushels) and the rental cost of land is zero so the average cost curve includes only the farm's costs of labor, capital, materials, and energy-not land. This cost structure is representative of all firms in this industry. The market price of avocados is $40 per bushel The firm's profit maximizing output is bushels of avocados (Round your response to one decimal place.)
Suppose an avocado farm has cost C= 0.004q + 28q + 1250, (where q is measured in bushels) and the rental cost of land is zero so the average cost curve includes only the farm's costs of labor, capital, materials, and energy-not land. This cost structure is representative of all firms in this industry. The market price of avocados is $40 per bushel The firm's profit maximizing output is bushels of avocados (Round your response to one decimal place.)
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 19PAE
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