John Keeps Beehives and Sells 100 Quarts of Honey Per

question 112

Essay

John keeps beehives and sells 100 quarts of honey per month. The honey market is perfectly competitive, and the price of a quart of honey is $10. John has an average variable cost of $5 and an average fixed cost of $3. At 100 quarts per month, John's marginal cost is $10.
a) Is John maximizing his profit? If not, what should John do?
b) Calculate John's total revenue, total cost, and total economic profit or economic loss when he produces 100 quarts of honey.

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Definitions:

Consent Order

A legal agreement approved by a judge or competent authority, resolving a dispute between two parties without the need for a trial.

Fine

A monetary penalty imposed by a court on a person or entity as punishment for an offense or breach of law.

Trade Regulation Rules

Rules established by regulatory authorities to govern the practices of businesses, aimed at ensuring fairness in commerce and preventing anticompetitive behavior.

Consent Order

A legal agreement approved by a court, usually resolving a dispute between parties without admission of guilt or liability.