economics

Joseph = Farms, Inc. is a small firm in the agricultural industry. They have as= ked you to help them complete the limited data they have gathered in an eff= ort to enable effective decision-making. Some work can be done using MS Exc= el but it must be copied to an MS Word file for the final submission o= f this assignment. To assist Joseph Farms, Inc., respond to the follow= ing:

• Using MS Excel or a= table in MS Word, complete Table-1 (Joseph Farms, Inc., Cost and Revenue D= ata).
  • Assume that the price is $165.
  • Assume the fixed costs = are $125, at an output level of 1.
  • Assume that the data represents a firm in pure comp= etition.
  • Show your calculations = in summary form.
• Explain the MC=MR Rule.  Describe the marke= t structures to which this rule applies.
• Create a chart to illus= trate the data in Columns 9 and 10.
• Describe the profit maximizing (or loss minimizing= ) output for this firm.  Explain why or why not there an economic prof= it?
• Explain why a firm in pure competition is considered to be a “pri= ce taker.”

 (Assignment continues below Table-1.)

Table-1:  Joseph Farms, Inc., Cost and Revenue Data

Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7		Column 8	Column 9	Column 10	Column 11
Output Level	Price per unit	Total F= ixed Cost	Total Variable C= ost	Total Cost	Average Fixed Cost	Average Variable Cost		Average Total Cost	Marg= inal Cost	Marginal Revenue	= Total Revenue
0			=  $          &nbsp= ;  -		NA
1			=  $    113.00
2		=	=  $    213.00				<= p>			=
3	&nbsp= ;	&nbsp= ;	&nbsp= ;$    300.00						=	=
4			$    375.00				=		=	=
5			=  $    463.00
6		=	=  $    563.00				<= p>			=
7	&nbsp= ;	&nbsp= ;	&nbsp= ;$    675.00						=	=
8			$    813.00				=		=	=
9			=  $    975.00
10		=	=  $ 1,163.00				<= p>			=

• Using the data in Table-1 (Joseph Farms, = Inc., Cost and Revenue Data), complete Table-2 (Joseph Farms, Inc., Revenue= /Profit/Loss Data). Show your calculations in summary form.
• Using the completed dat= a in Table-2 (Joseph Farms, Inc., Revenue/Profit/Loss Data), Identify the b= reak even output level for this firm.
• If this firm is in pure competition, at what out= put level would they operate? Show your calculations in summary form.
  

Table-2: Joseph Farms, Inc., Revenue/= Profit/Loss Data

Output Level	Price	Total Revenue	Profit or Loss
0
<= tr>	1
2	=
3
4			<= td valign="bottom" style="width:75px;white-space:nowrap">
5			=
6
7	=
8
9			<= td valign="bottom" style="width:75px;white-space:nowrap">
10			=

 <= /p>

Save your MS Word file including your graphs or ch= arts using the filename

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