Explain which of the variables computed in the table and

Question

Quantitative Literacy Assignment

Part I. Compute the values for the blank cells.

Henry Korn & Sons, Inc. - A Perfectly Competitive Firm

Q (Fields)	Price Per Ton	TR	MR Per Ton	FC	VC	TC	Profit or loss	AFC Per Ton	AVC Per Ton	ATC Per Ton	MC Per Ton
0	$40.00				$ 0
1000	$40.00				24,000	$59,000
2000	$40.00				40,000
3000	$40.00				60,000
4000	$40.00				85,000
5000	$40.00					$156,000
6000	$40.00				169,000
7000	$40.00				221,000
8000	$40.00				286,000

Part II. On the grid at the right - PLOT the per ton: P, MR, AVC, ATC, and M

Part III. Individual Writing Questions. Answer the following questions in a few well-written sentences.

1) How many fields should Henry & Sons plant this spring to maximize profits, and what determines this?

2) Should they try to get a price higher than $40 per ton to improve profits? Why?

3) Assume the price is $40 per ton, should they consider closing down? Why, or why not?

4) Explain which of the variables computed in the table and plotted on the graph represent the supply and demand curves for the Henry Korn & Sons Company. Why are they the supply and demand curves?