Isabel runs her family's small pineapple processing plant, which takes fresh pineapples and cuts them into pineapple rings, spears, and chunks. The capital stock of the firm consists of three machines of various vintages, each of which can process the pineapples into any of the three different forms. All of the machines are in excellent condition, and all machines can be running at the same time. Machine 1 Machine 2 Machine 3 Cost of Processing per Pineapple $0.20 0.30 0.50 Maximum Total Capacity (Pineapples) per Day 200 250 300 Assume that "cost of processing" includes all labor and materials, including the owner's wages. Assume further that Isabel's family signed a long-term contract (20 years) with a service company to keep the machines in good repair for a fixed fee of $3,650 per year, or $10 per day. If we derive the firm's marginal cost (MC) curve using the information from the table above the curve would Between output of 0 and 200 units the MC would equal Between output of 200 and 450 units the MC would equal Between output of 450 and 750 units the MC would equal

Isabel runs her family's small pineapple processing plant, which takes fresh pineapples and cuts them into pineapple rings, spears, and chunks. The capital stock of the firm consists of three machines of various vintages, each of which can process the pineapples into any of the three different forms. All of the machines are in excellent condition, and all machines can be running at the same time. Machine 1 Machine 2 Machine 3 Cost of Processing per Pineapple $0.20 0.30 0.50 Maximum Total Capacity (Pineapples) per Day 200 250 300 Assume that "cost of processing" includes all labor and materials, including the owner's wages. Assume further that Isabel's family signed a long-term contract (20 years) with a service company to keep the machines in good repair for a fixed fee of $3,650 per year, or $10 per day. If we derive the firm's marginal cost (MC) curve using the information from the table above the curve would Between output of 0 and 200 units the MC would equal Between output of 200 and 450 units the MC would equal Between output of 450 and 750 units the MC would equal

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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