Output (Concession Stand Items) Number of Workers Employed Per Day Price of Labor Per Worker Per Day Total Variable Cost of Labor Total Fixed Costs Per Day Total Cost Per Day Average Price of Concession Stand Items Total Revenue Profit Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost Marginal Revenue 0 0 $120 0 $2,000 2000 $8.00 0 -2000 0 0 0 0 8 100 2 $120 240 $2,000 2240 $8.00 800 -1640 2.40 20 22.40 2.40 8 400 4 $120 480 $2,000 2480 $8.00 3200 720 1.20 5 6.20 0.80 8 750 6 $120 720 $2,000 2720 $8.00 6000 3280 0.96 2.66 3.62 0.67 8 900 8 $120 960 $2,000 2960 $8.00 7200 4240 1.07 2.22 3.29 1.60 8 1,025 10 $120 1200 $2,000 3200 $8.00 8200 5000 1.17 1.95 3.12 1.92 8 1,125 12 $120 1440 $2,000 3440 $8.00 9000 5560 1.28 1.77 3.06 2.40 8 1,200 14 $120 1680 $2,000 3680 $8.00 9600 5920 1.40 1.66 3.07 3.20 8 1,250 16 $120 1920 $2,000 3920 $8.00 10000 6080 1.54 1.60 3.14 4.80 8 1,280 18 $120 2160 $2,000 4160 $8.00 10240 6080 1.69 1.56 3.25 8 8 1,290 20 $120 2400 $2,000 4400 $8.00 10320 5920 1.86 1.55 3.41 24 8 1,289 22 $120 2640 $2,000 4640 $8.00 10312 5672 2.05 1.55 3.60 -240 8 1,280 24 $120 2880 $2,000 4880 $8.00 10240 5360 1.78 1.56 3.81 -26.67 8 Use this chart to answer the following questions: Question 1: What is the level of profit that is made if 2 workers are employed at the concession stand and only 100 items of output are produced (sold) at the concession stand? Question 1a: Should they continue to operate the concession stand if only 100 concession stand items are being produced (sold) by 2 workers? Why, or why not? Question 2: If they wanted to produce (sell) 1,290 items from the concession stand, would profit be maximized? Why, or why not?
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Output (Concession Stand Items) |
Number of Workers Employed Per Day |
|
Total Variable Cost of Labor |
Total Fixed Costs Per Day |
Total Cost Per Day |
Average Price of Concession Stand Items |
Total Revenue |
Profit |
|
Average Fixed Cost |
|
Marginal Cost |
Marginal Revenue |
|
0 |
0 |
$120 |
0 |
$2,000 |
2000 |
$8.00 |
0 |
-2000 |
0 |
0 |
0 |
0 |
8 |
|
100 |
2 |
$120 |
240 |
$2,000 |
2240 |
$8.00 |
800 |
-1640 |
2.40 |
20 |
22.40 |
2.40 |
8 |
|
400 |
4 |
$120 |
480 |
$2,000 |
2480 |
$8.00 |
3200 |
720 |
1.20 |
5 |
6.20 |
0.80 |
8 |
|
750 |
6 |
$120 |
720 |
$2,000 |
2720 |
$8.00 |
6000 |
3280 |
0.96 |
2.66 |
3.62 |
0.67 |
8 |
|
900 |
8 |
$120 |
960 |
$2,000 |
2960 |
$8.00 |
7200 |
4240 |
1.07 |
2.22 |
3.29 |
1.60 |
8 |
|
1,025 |
10 |
$120 |
1200 |
$2,000 |
3200 |
$8.00 |
8200 |
5000 |
1.17 |
1.95 |
3.12 |
1.92 |
8 |
|
1,125 |
12 |
$120 |
1440 |
$2,000 |
3440 |
$8.00 |
9000 |
5560 |
1.28 |
1.77 |
3.06 |
2.40 |
8 |
|
1,200 |
14 |
$120 |
1680 |
$2,000 |
3680 |
$8.00 |
9600 |
5920 |
1.40 |
1.66 |
3.07 |
3.20 |
8 |
|
1,250 |
16 |
$120 |
1920 |
$2,000 |
3920 |
$8.00 |
10000 |
6080 |
1.54 |
1.60 |
3.14 |
4.80 |
8 |
|
1,280 |
18 |
$120 |
2160 |
$2,000 |
4160 |
$8.00 |
10240 |
6080 |
1.69 |
1.56 |
3.25 |
8 |
8 |
|
1,290 |
20 |
$120 |
2400 |
$2,000 |
4400 |
$8.00 |
10320 |
5920 |
1.86 |
1.55 |
3.41 |
24 |
8 |
|
1,289 |
22 |
$120 |
2640 |
$2,000 |
4640 |
$8.00 |
10312 |
5672 |
2.05 |
1.55 |
3.60 |
-240 |
8 |
|
1,280 |
24 |
$120 |
2880 |
$2,000 |
4880 |
$8.00 |
10240 |
5360 |
1.78 |
1.56 |
3.81 |
-26.67 |
8 |
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Use this chart to answer the following questions:
Question 1: What is the level of profit that is made if 2 workers are employed at the concession stand and only 100 items of output are produced (sold) at the concession stand?
Question 1a: Should they continue to operate the concession stand if only 100 concession stand items are being produced (sold) by 2 workers? Why, or why not?
Question 2: If they wanted to produce (sell) 1,290 items from the concession stand, would profit be maximized? Why, or why not?
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