Tom leases a farmer's field for $100 a day and grows pineapples. He pays students $70 a day to pick pineapples and he leases capital at $20 a day. The table gives the daily output. What is Tom's total cost and average total cost if he produces 123 pineapples a day? When Tom produces 123 pineapples a day, total cost is a day. Output (pineapples per day) Labor (students) 1 25 55 75 4 93 109 123 135

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.7P
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Tom leases a farmer's field for $100 a day and grows pineapples. He pays students $70 a day to pick pineapples and he
leases capital at $20 a day.
The table gives the daily output.
What is Tom's total cost and average total cost if he produces 123 pineapples a day?
When Tom produces 123 pineapples a day, total cost is
a day.
Output
(pineapples per day)
Labor
(students)
1
25
55
3
75
4
93
109
6.
123
7
135
Transcribed Image Text:Tom leases a farmer's field for $100 a day and grows pineapples. He pays students $70 a day to pick pineapples and he leases capital at $20 a day. The table gives the daily output. What is Tom's total cost and average total cost if he produces 123 pineapples a day? When Tom produces 123 pineapples a day, total cost is a day. Output (pineapples per day) Labor (students) 1 25 55 3 75 4 93 109 6. 123 7 135
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