midterm short answer answers

midterm short answer answers - Short Answer (15 points...

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Short Answer (15 points total) Pounds of compost Pounds of tomatoes MC MB 0 100 1 120 .50*1=.50 20*.30=6.00 2 125 .50*1=.50 5*.30=1.50 3 128 .50*1=.50 3*.30=.90 4 130 .50*1=.50 2*.30=.60 5 131 .50*1=.50 1*.30=.30 6 131.5 .50*1=.50 .5*.30=.15 1. To earn extra money in the summer, you grow tomatoes and sell them at the farmers’ market for 30 cents per pound. By adding compost to your garden, you can increase your yield as shown in the table above. If compost costs 50 cents per pound and your goal is to make as much money as possible, how many pounds of compost should you add? Explain why. (2 pts) 4 pounds of compost. MB is the marginal benefit for each pound of compost, which can be calculated by how much additional yield of tomatoes you get multiplied by how much you can sell them for at the farmer’s market. MC is the marginal cost of each pound of compost, which is constant per pound at 50 cents. As long as MB > MC you are adding to your economic surplus (TB-TC). You want to add compost as long as MB >
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midterm short answer answers - Short Answer (15 points...

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