### Question 1: Costs and Production#### Scenario:- Maria is starting a food ordering and delivery company.- Customers order meals online. Employees prepare the meals and deliver them.- Maintenance on the ordering system costs $5 per day.- Rent for the space where orders are prepared is $50 per day.- The business incurs other fixed costs that total $10 each day.#### Cost Table:The table below shows the costs associated with different numbers of workers and meals prepared:| Workers (Labor L) | Output Q | MPL | FC | Cost of Ingredients | VC | TC | AFC | AVC | ATC | MC | TR | Profit | Profit per Meal ||-------------------|----------|-----|----|---------------------|-----|------|------|------|------|-----|-----|--------|-----------------|| 0 | 0 | 0 | $65| $0 | $0 | $65 | | | | | | | || 1 | 30 | 30 | $65| $75 | $75 | $140 | $2.17| $2.50| $4.67| | | | || 2 | 80 | 50 | $65| $100 | $100| $240 | $0.81| $1.25| $3.00| | | | || 3 | 150 | 70 | $65| $121 | $121| $326 | $0.43| $0.81| $2.17| | | | || 4 | 180 | 30 | $65| $138 | $138| $366 | $0.36| $0.77| $2.03| | | | || 5 | 210 | 30 | $65| $158 | $158| $421 | $0.31| $0.75| $2.00| | | | || 6 | 230 | 20 | $65| $176 | $176| $471 | $0.28| $0.77| $

Fixed costs are that cost which remains same and incur even when there is no production.Variable…

Question 1: Costs and Production Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5 per day. The company also rents space where orders are prepared. Rent costs $50 per day. To make the deliveries, the business also rents two delivery cars that cost $10 each per day. The costs of ingredients for preparing different numbers of meals are provided in the table below. Maria also has to hire between 0 and 10 workers (depending on the number of meals she chooses to make) to buy ingredients, prepare meals, and deliver the orders. She will pay each employee $120 per day. The first two columns of the table below show how many meals different number of workers can prepare and deliver. Workers Meals Cost of MPL FC VC TC AFC ONC ATC MC Profit per

Question 1: Costs and Production Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5 per day. The company also rents space where orders are prepared. Rent costs $50 per day. To make the deliveries, the business also rents two delivery cars that cost $10 each per day. The costs of ingredients for preparing different numbers of meals are provided in the table below. Maria also has to hire between 0 and 10 workers (depending on the number of meals she chooses to make) to buy ingredients, prepare meals, and deliver the orders. She will pay each employee $120 per day. The first two columns of the table below show how many meals different number of workers can prepare and deliver. Workers Meals Cost of MPL FC VC TC AFC ONC ATC MC Profit per

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5 per day. The company also rents space where orders are prepared. Rent costs $50 per day. To make the deliveries, the business also rents two delivery cars that cost $10 each per day. The costs of ingredients for preparing different numbers of meals are provided in the table below. Maria also has to hire between 0 and 10 workers (depending on the number of meals she chooses to make) to buy ingredients, prepare meals, and deliver the orders. She will pay each employee $120 per day. The first two columns of the table below show how many meals different number of workers can prepare and deliver. Price per meal $50 Workers (Labor L) 0 1 2 3 4 5 6 7 8 9 10 Meals (Output Q) ol- 30 42 52 60 67 73 79 85 90 95 MPL FC Cost of ingredients $10 $75 $100 $121 $138 $152…
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