Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 12, Problem 2.9P
To determine
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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
(Labor L)
0
1
2
3
4
5
6
7
8
9
10
Meals
(Output Q)
ol-
30
42
52
60
67
73
79
85
90
95
MPL
FC
Cost of
ingredients
$10
$75
$100
$121
$138
$152…
In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year at a price of $7.50. If the variable cost of production is $5.00 per unit, what is the most the firm can spend to lease the new equipment without losing money?
Microeconomics II is the most fun course you ever took. Explain?
A profit-maximizing competitive firm uses just one input, x. Its production function is q= 4(x)^1/2. The price of out-put is $28 and the factor price is $7. The amount of the factor that the firm demands is?
Chapter 12 Solutions
Principles of Economics (12th Edition)
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