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Author Question: Puttal runs his family's pecan processing plant, which shells pecans and produces bags of pecan ... (Read 395 times)

BSITTON

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on: Nov 23, 2022
Puttal runs his family's pecan processing plant, which shells pecans and produces bags of pecan halves, pecan pieces, and chopped pecans. The capital stock of the firm consists of three machines, each of which can process pecans into the three different types. All the machines are in excellent condition and all three can be running at the same time.
The table shows the cost or processing per bag and the maximum total capacity per day for each of the machines.

​Cost of ProcessingMaximum Capacity
Machine 1$0.10​160​
Machine 2$0.40​350​
Machine 3$0.75​600​
Assume the costs of processing includes all variable costs. In addition, the company has a fixed cost of $5 per day to ensure the machines are in good condition.
At a price of $0.64, how many bags of pecans does this company produce per day? What is total profit per day?
Please round your answer to two decimal places.
◦ 860, -$97.10
◦ 510, $165.40
◦ 860, -$92.10
◦ 510, $170.40
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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Marked as best answer by BSITTON on Nov 23, 2022

DevinBrifm

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Reply #1 on: Nov 23, 2022
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BSITTON

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Reply 2 on: Nov 23, 2022
Great answer, keep it coming :)

nyrave

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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