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 Meals (Labor L) (Output Q) 0 1 2 3 4 5 6 7 8 9 10 0- 30 42 52 60 67 73 79 85 90 95 MPL 30 12 10 8 7 6 6 6 5 5 FC Cost of ingredients $10 $75 $100 $121 $138 $152 $165 $177 $189 $199 $210 VC TC AFC AVC ATC MC TR Profit Profit per meal d) Use Excel functions to complete the table by calculating FC, VC, TC, MC, AFC, AVC, TR, Profit, and Profit per meal for each level of output (number of meals). Graph AVC, ATC, and MC curves.
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 Meals (Labor L) (Output Q) 0 1 2 3 4 5 6 7 8 9 10 0- 30 42 52 60 67 73 79 85 90 95 MPL 30 12 10 8 7 6 6 6 5 5 FC Cost of ingredients $10 $75 $100 $121 $138 $152 $165 $177 $189 $199 $210 VC TC AFC AVC ATC MC TR Profit Profit per meal d) Use Excel functions to complete the table by calculating FC, VC, TC, MC, AFC, AVC, TR, Profit, and Profit per meal for each level of output (number of meals). Graph AVC, ATC, and MC curves.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:6
7
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3 Suppose that Maria is starting a food ordering and delivery company.
4 Customers order meals online. Employees prepare the meals and deliver them to customers.
5 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.
Meals
(Output Q)
D
0|-
30
42
52
60
67
73
79
85
90
95
MPL
E
30
12
10
8
7
6
6
6
5
5
F
8
The costs of ingredients for preparing different numbers of meals are provided in the table below.
9 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.
10 She will pay each employee $120 per day.
11 The first two columns of the table below show how many meals different number of workers can prepare and deliver.
12
Price per meal
$50
Workers
(Labor L)
FC
G
Cost of
ingredients
$10
$75
$100
$121
$138
$152
$165
$177
$189
$199
$210
H
VC
I
TC
J
AFC
K
AVC
L
ATC
M
MC
TR
N
Profit
O
Profit per
meal
P
d) Use Excel functions to complete the table by calculating FC, VC, TC, MC, AFC, AVC, TR, Profit, and Profit per meal for each level of output (number of meals). Graph AVC, ATC, and MC curves.
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