The Costs of Production Assignment Mr. Krabs owns the Krusty Krab, a small restaurant with a single frying machine and a fry cook The house specialty is their Krabby Patty-famous all across Bikini Bottom The Krusty Krab's fixed costs are the rent (550), the fry machine (520), and the owner's salary (530). The fry cook Sponge Bob, earns $8 per hour. 1. Complete the following table Krabby Hours Patties 0 10 20 30 40 50 2328 of labor 0 8 80 13 16 20 25 32 TFC TVC TC MC XXX 40 50 2. Sketch the MC, ATC and AVC curves for the Krusty Krab AFC AVC XXX 3. What will happen to the MC if Mr. Krabs increases his salary to $60? ATC

The Costs of Production Assignment Mr. Krabs owns the Krusty Krab, a small restaurant with a single frying machine and a fry cook The house specialty is their Krabby Patty-famous all across Bikini Bottom The Krusty Krab's fixed costs are the rent (550), the fry machine (520), and the owner's salary (530). The fry cook Sponge Bob, earns $8 per hour. 1. Complete the following table Krabby Hours Patties 0 10 20 30 40 50 2328 of labor 0 8 80 13 16 20 25 32 TFC TVC TC MC XXX 40 50 2. Sketch the MC, ATC and AVC curves for the Krusty Krab AFC AVC XXX 3. What will happen to the MC if Mr. Krabs increases his salary to $60? ATC

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

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