Joe’s body board factory pays $60 a day for equipment and $200 a day to each worker it hires. The following table sets out Joe’s total product schedule. Number of Workers and Total Product Labor(workers per day) Total product(body boards per day) 0 0 1 20 2 44 3 60 4 72 1. Construct Joe’s marginal product schedule. At which worker is Joe’s marginal product starts declining? 2. Construct Joe’s total variable cost and total cost schedules. Why does the difference between total cost and total variable cost at each level of output? 3. Construct the average fixed cost, average variable cost, and average total cost and marginal cost schedules. 4. At what output is Joe’s average total cost at a minimum? At what output is Joe’s average variable cost at a minimum?
Joe’s body board factory pays $60 a day for equipment and $200 a day to each worker it hires. The following table sets out Joe’s total product schedule.
Number of Workers and Total Product
Labor(workers per day) Total product(body boards per day)
0 0
1 20
2 44
3 60
4 72
1. Construct Joe’s marginal product schedule. At which worker is Joe’s marginal product starts declining?
2. Construct Joe’s total variable cost and total cost schedules. Why does the difference between total cost and total variable cost at each level of output?
3. Construct the average fixed cost,
4. At what output is Joe’s average total cost at a minimum? At what output is Joe’s average variable cost at a minimum?
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