Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
What are the fixed and variable cost?

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Question 2: Costs and Production (Parts a - k)
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a) Use Excel Charts to graph this business' production function (relationship between L and Q).
Hint: Select the data that you would like to be included, and go to Insert/ Chart => All charts => Select "Line".
Meals (Output Q)
Merge
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
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
(Labor L) (Output Q)
MPL=Q/L
Cost of
ingredients
0
0
30
42
52
60
67
73
79
85
90
95
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