Marty's frozen yogurt shop sells cups of frozen yogurt in a local university town. He owns 3 frozen yogurt machines. His other inputs are refrigerators, frozen yogurt mix, cups, sprinkles, and workers. He estimates that his production function when he increases the number of workers (and materials like yoghurt mix and cups) is: Quantity of Quantity of workers frozen yoghurt (cups) (labor) 1 110 2. 200 3. 270 4. 300 320 330 a) What are the fixed inputs and what are the variable inputs in this production process? b) What is Marty's VC and TC when he produces 110 cups? Assume he pays each worker $80 a day. His fixed costs are $100 a day. Other VC come to $.50 per cup of yogurt produced. Calculate the VC, FC and TC for all levels of output. O Calculate MC for all levels of output.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Marty's frozen yogurt shop sells cups of frozen yogurt in a local university town. He owns 3 frozen yogurt
machines. His other inputs are refrigerators, frozen yogurt mix, cups, sprinkles, and workers. He estimates that
his production function when he increases the number of workers (and materials like yoghurt mix and cups) is:
Quantity of
Quantity of
workers
frozen
(labor)
yoghurt
(cups)
1
110
200
3
270
300
320
6.
330
a) What are the fixed inputs and what are the variable inputs in this production process?
b) What is Marty's VC and TC when he produces 110 cups? Assume he pays each worker $80 a day. His fixed costs
are $100 a day. Other VC come to $.50 per cup of yogurt produced. Calculate the VC, FC and TC for all levels of
output.
c) Calculate MC for all levels of output.
Page: 4
Transcribed Image Text:Marty's frozen yogurt shop sells cups of frozen yogurt in a local university town. He owns 3 frozen yogurt machines. His other inputs are refrigerators, frozen yogurt mix, cups, sprinkles, and workers. He estimates that his production function when he increases the number of workers (and materials like yoghurt mix and cups) is: Quantity of Quantity of workers frozen (labor) yoghurt (cups) 1 110 200 3 270 300 320 6. 330 a) What are the fixed inputs and what are the variable inputs in this production process? b) What is Marty's VC and TC when he produces 110 cups? Assume he pays each worker $80 a day. His fixed costs are $100 a day. Other VC come to $.50 per cup of yogurt produced. Calculate the VC, FC and TC for all levels of output. c) Calculate MC for all levels of output. Page: 4
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