Ana's Big Burger is a small restaurant that sells hamburgers. For Ana, grills are a fixed input and workers are variable inputs. Assume that labor is Ana's only variable cost. Ana has a fixed cost of $100 per day and pays each of her workers $100 per day. Ana's total product schedule and total cost at each level of labor are presented in the following table. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal physical product from hiring one more worker.) Quantity of Labor (Workers) 0 1 2 3 4 5 Quantity of Output (Burgers per day) 0 50 150 200 225 235 Marginal Physical Product of Labor (Burgers per day) When hiring the first and second workers, Ana's Big Burger faces Total Cost (Dollars per day) $100 $200 $300 $400 $500 $600 marginal returns to labor. Over the range of workers for which the marginal product of labor is increasing, Ana's Big Burger faces Marginal Cost (Dollars per burger) $ $ $ $ marginal cost.

Ana's Big Burger is a small restaurant that sells hamburgers. For Ana, grills are a fixed input and workers are variable inputs. Assume that labor is Ana's only variable cost. Ana has a fixed cost of $100 per day and pays each of her workers $100 per day. Ana's total product schedule and total cost at each level of labor are presented in the following table. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal physical product from hiring one more worker.) Quantity of Labor (Workers) 0 1 2 3 4 5 Quantity of Output (Burgers per day) 0 50 150 200 225 235 Marginal Physical Product of Labor (Burgers per day) When hiring the first and second workers, Ana's Big Burger faces Total Cost (Dollars per day) $100 $200 $300 $400 $500 $600 marginal returns to labor. Over the range of workers for which the marginal product of labor is increasing, Ana's Big Burger faces Marginal Cost (Dollars per burger) $ $ $ $ marginal cost.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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