Management Essay

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Part I Part II Quantity (Number of Fields) Part III. Individual Writing Questions: Answer the following questions in a few well-written sentences (25-50 Words Each). Support your answers with data. 1. How many fields should Henry & Sons plant this spring to maximize profits and what determines this? Henry & sons should plan only one field or more than 8 fields to maximize the profit. This shows that the variable cost is too high which reduce the profit margin for the Henry & Sons. It also shows that the marginal revenue is same for all the quantity they produce. 2. Should they try to get a price higher than $40 per ton to improve profits? Why, or why not? Yes, they should try to get a price higher than $40 per ton to maximize the profit. As the variable cost is too high as we increase the production. As this is a highly competitive firm so they can ask for high price to increase the profit margin. 3. Assume the price is $40 per ton, should they consider closing down? Why, or why not? Yes they should consider closing down if the price remains at $40 per ton. They can only produce the one field to get a profit and the remaining fields will remain unused which will result in the opportunity cost for producing some thin else. 4. Explain which of the variables computed in the table and plotted on the graph represent the supply and demand curves for the Henry Corn & Sons Company. Average Total cost (ATC) calculated in the table is showing the demand and curve relation in the field. The average total cost first decrease and then rise with the increase in the production of the fields. 5. Explain what the supply and demand curves indicate to the Henry Corn firm. This demand and supply curve indicates that the average total cost will first decline with the increase in the level of production to some extent and

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