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econ homework number 4 - labor Right now the variable cost...

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Abby Kelly Food and Recourse Economics Homework 5 1. Maximizing Profit a. 5 th output b. 6 th output 2. Profit maximizing a. I would advise the firm to increase the price of the product or decrease their average total cost. b. When finding out that there average variable cost where 3.50 I would advise the form to shut down 3. Since there is not a way to change the fixed cost, rental land at 4 dollars, and one cannot stop producing wheat, the only reasonable thing that one could advise is decrease the variable cost of
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Unformatted text preview: labor. Right now the variable cost is running the farmer 4 dollars he needs to find a way to reduce that to at least break even so he is not losing money but ideally to one so he would be making a profit. 4. Shoe Store a. She will sell 500 pairs of shoes b. Her total profit will be 35,000 dollars c. She should expect t more people to enter into the market since there is a profit to be made. 5....
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