-Ayanna grows herbs. Last year she grew 2,000 pounds of herbs in a year while using 250 square feet of land and 1 worker. This year she doubled her land to 500 square feet, doubled her workers to 2, and grew 4,500 pounds of herbs. She sells her rare, organic herbs for $50 a pound. She pays her workers $25,000 a year and rents her land for $100 per square foot for a year. These are her only costs.
a) What was Ayanna's total cost last year and this year?
b) What was Ayanna's average total cost last year and this year?
c) Did Ayanna experience economies or diseconomies of scale?
Definitions:
Intelligence Quotient
A measure of a person's intellectual abilities in relation to their age group, typically assessed through standardized tests.
Mental Age
A measure of an individual's mental aptitude based on the average abilities of people at a certain age level.
Chronological Age
The actual age of an individual measured in years from the date of birth to the current date.
Heritability
The proportion of variation among individuals that can be attributed to genetic factors.
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