Webby Inc. is a web development company. Webby’s monthly production function for developing websites is given in the table below. Webby pays $3,000 a month in rent for office space and equipment. It pays each programmer $2,000 a month. There are no other production costs. Fill in the table of production costs.**Instructions:** Round your answers to the nearest dollar.| Programmers | Websites | Variable Cost | Total Cost | Average Fixed Cost | Average Variable Cost | Average Total Cost | Marginal Cost ||-------------|----------|---------------|------------|---------------------|-----------------------|-------------------|---------------|| 0 | 0 | - | - | - | - | - | - || 1 | 2 | 2,500 | | | | | || 2 | 6 | 1,167 | | | | | || 3 | 12 | 750 | | | | | || 4 | 18 | | | | | | || 5 | 22 | | | | | | || 6 | 24 | | | | | | |- **Programmers:** Number of programmers employed.- **Websites:** Number of websites produced.- **Variable Cost:** Cost that varies with the level of output (e.g., wages for programmers).- **Total Cost:** Sum of fixed and variable costs.- **Average Fixed Cost:** Fixed costs divided by the number of websites.- **Average Variable Cost:** Variable costs divided by the number of websites.- **Average Total Cost:** Total costs divided by the number of websites.- **Marginal Cost:** Cost of producing an additional website.Fill in the required data by performing the necessary calculations using the provided formulas and information.

Given Monthly rent paid = 3000 $ fixed cost Variable cost = 2000 $ paid per programmer Now, VC =…

Answered: nstructions: Round your answers to the…

Business

Economics

nstructions: Round your answers to the nearest dollar.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.

Question

Webby Inc. is a web development company. Webby’s monthly production function for developing websites is given in the table below. Webby pays $3,000 a month in rent for office space and equipment. It pays each programmer $2,000 a month. There are no other production costs. Fill in the table of production costs.

**Instructions:** Round your answers to the nearest dollar.

| Programmers | Websites | Variable Cost | Total Cost | Average Fixed Cost | Average Variable Cost | Average Total Cost | Marginal Cost |
|-------------|----------|---------------|------------|---------------------|-----------------------|-------------------|---------------|
| 0 | 0 | - | - | - | - | - | - |
| 1 | 2 | 2,500 | | | | | |
| 2 | 6 | 1,167 | | | | | |
| 3 | 12 | 750 | | | | | |
| 4 | 18 | | | | | | |
| 5 | 22 | | | | | | |
| 6 | 24 | | | | | | |

- **Programmers:** Number of programmers employed.
- **Websites:** Number of websites produced.
- **Variable Cost:** Cost that varies with the level of output (e.g., wages for programmers).
- **Total Cost:** Sum of fixed and variable costs.
- **Average Fixed Cost:** Fixed costs divided by the number of websites.
- **Average Variable Cost:** Variable costs divided by the number of websites.
- **Average Total Cost:** Total costs divided by the number of websites.
- **Marginal Cost:** Cost of producing an additional website.

Fill in the required data by performing the necessary calculations using the provided formulas and information.

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