Q.1. Pak surgical makes masks and then sells them on door to door. Here is the relationshipbetween number of workers and Pak surgical output in each day:WorkersMarginalProductAverage total Marginal costOutputTotal Costcost110403801101306.1407145a) Fill in the column of marginal products. What pattern do you see? How might you explain it?b) A worker costs $100 a day, and the firm has fixed costs of $200. Use this information to fill inthe column for total cost.c) Fill in the column for average total cost. What pattern do you see?d) Now fill in the column for marginal cost. What pattern do you see?e) Compare the column for marginal product and the column for marginal cost. Explain therelationship.f) Compare the column for average total cost and the column for marginal cost. Explain therelationship.2.

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Answered: Q.1. Pak surgical makes masks and then…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the same firm from the Monday assignment but now let's call that cost schedule total variable cost. Q 1 2 3 4 5 6 7 8 9 TVC 12 20 24 28 34 42 52 64 78 And let's imagine that there is fixed costs of 18 which is sunk in the short run. a. Show this firm's average total cost, average variable cost and marginal cost on a graph. Indicate the efficient scale (I don't think the book uses the words "efficient scale" but it's the quantity where profit would be zero when P=MC. We will discuss what I mean by "efficient scale but probably not before Thursday. By "indicate" I mean give the quantity and MC. I don't need every point to be exactly to scale, I just care about the general shape of the curves, where things cross and the location and…

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