Question

Joan grows pumpkins. If Joan plants no seeds on her farm, she gets no harvest. If she plants 1 bag of seeds, she gets 500 pumpkins. If she plants 2 bags, she gets 800 pumpkins. If she plants 3 bags, she gets 900 pumpkins. A bag of seeds costs $100, and seeds are her only cost. 16. Refer to Scenario 13-15. Joan's total-cost curve is

A. increasing at an increasing rate.
B. increasing at a decreasing rate.
C. increasing at a constant rate.
D. decreasing

Answer 1

D. decreasing

Step-by-step explanation:

Base on the scenario been described in the question, Joan cost curve is decreasing. This is because when she plants 1 bag seed of seed, she gets 500 pumpkins, when she plants two bags of seeds, she gets 800 pumpkins and finally, when she plants three bag of seeds, she gets 900 pumpkins, if we noticed, we can see that the pumpkins are decreasing as there is a increase in the seeds bag, so her total cost curve is decreasing.

Answer 2

The answer is A) increasing at an increasing rate

Step-by-step explanation:

To determine the effect on Joan's total cost-curve we need to calculate the actual cost per pumpkins produced at the bag 1, bag 2 and bag 3.

1 bag yields 500 pumpkins at a cost of $100 at a cost of $0.2 per pumpkin

2 bags yield 800 pumpkins at a cost of $200 at a cost of $0.25 per pumpkin

3 bags yield 900 pumpkins at a cost of $300 at a cost of $0.33 per pumpkin

Therefore the more pumpkins she plants the higher he costs become. However the nature in which the costs are increasing is at an increasing rate. The cost per pumpkin is higher at every interval of added bags. Thus the answer is A.

Increasing at an increasing rate.