Answered: product schedule for plastic bags. Each…

product schedule for plastic bags. Each unit of labor costs $25 and the total cost of capital is $100. The selling price of the plastic bags in the market is $8.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The table below shows the total product schedule for plastic bags. Each unit of labor costs $25 and the total cost of capital is $100. The selling price of the plastic bags in the market is $8.

| Labour | Total product (plastic bags per day) |
|--------|--------------------------------------|
| 0 | 0 |
| 1 | 5 |
| 2 | 15 |
| 3 | 35 |
| 4 | 50 |
| 5 | 60 |
| 6 | 65 |

**Question:**

What are the total costs (TC) of producing 65 plastic bags a day?

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