lectur23-page6

lectur23-page6 - Market price = $.04 /lb. Do we harvest and...

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3. You have 5 acres of lettuce ready for harvest, you must harvest today. Expected yield = 20,000 lbs. Total production costs to date = $1,000 /ac. ($.05 /lb.) Harvest and selling cost = $.02 /lb.
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Unformatted text preview: Market price = $.04 /lb. Do we harvest and sell? Production cost $.05 /lb. (SUNK COST, IRRELEVANT) Harv. & selling cost $.02 /lb. Total cost $.07 /lb. Market price $.04 /lb....
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