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Construct the average fixed cost, average variable cost, and average total cost schedules and the marginal cost schedule.

Construct the average fixed cost, average variable cost, and average total cost schedules and the marginal cost schedule.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Construct the average fixed cost, average variable cost, and average total cost schedules and the marginal cost schedule.

Len's body board factory pays $60 a day for equipment and $200 a day to each worker it hires. The table sets out Len's total product schedule. | Labor (workers per day) | Total product (body boards per day) | |-------------------------|-------------------------------------| | 0 | 0 | | 1 | 20 | | 2 | 44 | | 3 | 60 | | 4 | 72 | **Explanation of the Table:** - The first column, "Labor (workers per day)," indicates the number of workers hired each day. - The second column, "Total product (body boards per day)," shows the number of body boards produced per day based on the number of workers. This table demonstrates the relationship between the number of workers and the output of the factory. Initially, as more workers are hired, production increases significantly. However, the rate of increase in production may diminish as more workers are added.
Transcribed Image Text:Len's body board factory pays $60 a day for equipment and $200 a day to each worker it hires. The table sets out Len's total product schedule. | Labor (workers per day) | Total product (body boards per day) | |-------------------------|-------------------------------------| | 0 | 0 | | 1 | 20 | | 2 | 44 | | 3 | 60 | | 4 | 72 | **Explanation of the Table:** - The first column, "Labor (workers per day)," indicates the number of workers hired each day. - The second column, "Total product (body boards per day)," shows the number of body boards produced per day based on the number of workers. This table demonstrates the relationship between the number of workers and the output of the factory. Initially, as more workers are hired, production increases significantly. However, the rate of increase in production may diminish as more workers are added.
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