Suppose you are moving across town. Doing your research you find that the average rate of a moving company is about $250 per hour for each mover (moving truck included). The marginal benefit you receive from each hour of the movers' time (and truck) is listed in the accompanying table. Hours of movers' time Marginal benefit 1 hour $850 2 hours $620 3 hours $500 4 hours $250 5 hours $150 6 hours $100 7 hours a.For how many hours should you hire the movers? How much consumer surplus do you receive? b. Now suppose that instead of paying per hour, a moving company offers a flat rate of S1,500 for two movers plus a truck for an eight-hour day. Would you hire the movers? How has your consumer surplus changed?

Suppose you are moving across town. Doing your research you find that the average rate of a moving company is about $250 per hour for each mover (moving truck included). The marginal benefit you receive from each hour of the movers' time (and truck) is listed in the accompanying table. Hours of movers' time Marginal benefit 1 hour $850 2 hours $620 3 hours $500 4 hours $250 5 hours $150 6 hours $100 7 hours a.For how many hours should you hire the movers? How much consumer surplus do you receive? b. Now suppose that instead of paying per hour, a moving company offers a flat rate of S1,500 for two movers plus a truck for an eight-hour day. Would you hire the movers? How has your consumer surplus changed?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

See similar textbooks

Similar questions

Would you consider an interest payment on a loan to a film an explicit or implicit cost?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
How does fixed cost affect marginal cost? Why is this relationship important?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
how to answer this?
2 You run a business selling used hand tools. The rent on your building is $1400/month. Utilities average $600 month. Your average cost to buy your used hand tools from a wholesaler is $9.5/tool. You spend S0.50/tool to package and individually price them. You have two employees in your store during the opening hours that sell the tools. Each employee gets a salary of $12/hour. Your store is open 10 hours/day, every day of the week. Over the course of a year, this averages out to 30 days'month. The average selling price for a used tool is $22. How many tools per month must be sold to make $4000 profit each month.
Jskxkskd
Production costs of books are presented in the table below. Labor Quantity Fixed Cost Variable Cost Total Cost MarginalCost AverageTotal Cost 0 0 $80 $0 $80 1 10 $80 $30 $110 2 26 $80 $60 $140 3 46 $80 $90 $170 4 65 $80 $120 $200 5 78 $80 $150 $230 Using the table above, calculate the average total cost for producing 10 books, in dollars.
Fill in the remaining cells of the following table. Average Total Cost (Dollars per pair) Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) 120 1 200 240 285 4 340 425 6. 540
Kanye runs a musical dinner theater. Last year, he earned 50000 in revenue and had explicit cost of 20000. Kanye could have made 29750 selling video games on the internet and received an additional 10000 if he rented out the store and equipment. Calculate kanyes implicit costs.