Hellen and Shana run their own business. Every Friday they take two gas grills and grill burgers in front of the Unilus Leopards Campus hall. Working from noon till 6pm, they are able to serve 250 hungry students. They are both equally good in what they are doing, so their wages are equal. One day Shana was not feeling well, so Hellen had to go there alone. Of course, she has chosen to use only one grill. Within the same period of time she was able to serve 120 customers. What has happened to the average cost of each burger? Show your work. b. What can be said about the returns to scale for their business? Explain.

Hellen and Shana run their own business. Every Friday they take two gas grills and grill burgers in front of the Unilus Leopards Campus hall. Working from noon till 6pm, they are able to serve 250 hungry students. They are both equally good in what they are doing, so their wages are equal. One day Shana was not feeling well, so Hellen had to go there alone. Of course, she has chosen to use only one grill. Within the same period of time she was able to serve 120 customers. What has happened to the average cost of each burger? Show your work. b. What can be said about the returns to scale for their business? Explain.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 4DQ

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