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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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