Please answer the table and the questions below. Suppose that Eli and Max have done an exhaustivestudy on the costs of producing cups of lemonade.They must pay $50 every day to the city for theright to sell lemonade on the sidewalk. This cost isfixed because it doesn't matter if they sell 50 cupsor zero. They must also pay $25 for every employeethat they hire (we will assume this is their onlyvariable input). Complete the schedule in order toanswer the questions below:UnitsTPVCFC TC МС АТС AVС AFCofLabor$018$2518503267543210036125381502.LO Answer the following:1. What is the TC of 6 units2. What is the MC of 2 units3. What is the ATC of 4 units4. What is the FC of 6 units5.What is the AVC of 5 units6. What is the AFC of 3 unitsLO CO

Answered: Units TP VC FC TC МС of Labor

Business

Economics

Units TP VC FC TC МС of Labor

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 4PA

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Question

Please answer the table and the questions below.

Suppose that Eli and Max have done an exhaustive
study on the costs of producing cups of lemonade.
They must pay $50 every day to the city for the
right to sell lemonade on the sidewalk. This cost is
fixed because it doesn't matter if they sell 50 cups
or zero. They must also pay $25 for every employee
that they hire (we will assume this is their only
variable input). Complete the schedule in order to
answer the questions below:
Units
TP
VC
FC TC МС АТС AVС AFC
of
Labor
$0
1
8
$25
18
50
3
26
75
4
32
100
36
125
38
150
2.
LO

Answer the following:
1. What is the TC of 6 units
2. What is the MC of 2 units
3. What is the ATC of 4 units
4. What is the FC of 6 units
5.
What is the AVC of 5 units
6. What is the AFC of 3 units
LO CO

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