2. The following table provides information about Pottery Inc. The wage rate per worker per hour is $10 and the cost of machine per hour is $20 per hour. Using the given information complete the table. Output (Pots produced per hour) 20 Number Number Marginal Product of Cost of Cost of Total of of Workers Machines Cost Workers Machines Labor 1 2 2 2 40 3 2 55 4 2 65 2 70 6. 72 If Pottery Inc. produces at a rate of 70 pots per hour and operates 8 hours per day, what is Pottery Inc.'s total labor cost per day? b. Suppose Pottery Inc. operates in a perfectly competitive market. If the price of a pot is $2, find out the profit maximizing output and economic profit. a.
2. The following table provides information about Pottery Inc. The wage rate per worker per hour is $10 and the cost of machine per hour is $20 per hour. Using the given information complete the table. Output (Pots produced per hour) 20 Number Number Marginal Product of Cost of Cost of Total of of Workers Machines Cost Workers Machines Labor 1 2 2 2 40 3 2 55 4 2 65 2 70 6. 72 If Pottery Inc. produces at a rate of 70 pots per hour and operates 8 hours per day, what is Pottery Inc.'s total labor cost per day? b. Suppose Pottery Inc. operates in a perfectly competitive market. If the price of a pot is $2, find out the profit maximizing output and economic profit. a.
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 15P
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