Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 14, Problem 3IAPA
To determine
Determine marginal product and average product based on the case study. Also, mention for what ranges the marginal product is increasing.
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9
I need help filling out the table and graphing it. Thank you.
. Write the word or phrase that best completes each statement or answers the question.
Table 11-6
Quantity of workers
Quantity of foot massages per day
Fixed cost
Variable cost
Total cost
Average total cost
Marginal cost
0
0
1
10
2
25
3
45
4
60
5
70
4) Refer to Table 11-6. Alicia Gregory owns a foot massage business. She leases 4 4) computer- controlled massage booths, for which she pays $125 per day. She cannot increase the number machines she leases without giving the manufacturer 3 months' notice. She can hire as many workers as she wants at a cost of $75 per day per worker. These are the only two inputs she uses in her business. Use this information to fill in the columns in the above table.
Chapter 14 Solutions
Foundations of Economics (8th Edition)
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- 25 es A firm's long run total costs are given in the table below. Instructions: Round your answers to two decimal places. a. Fill in the long run average total cost column. Output 1 2 3 st in 5 6 7 Long run total cost ($) 18 24 28 30 34 40 283 48 (Click to select) 63 80 Long run average total cost ($) K b. Over what production range does this firm experience economies of scale? (Click to select) c. Over what production range does this firm experience constant returns to scale? (Click to select) d. Over what production range does this firm experience diseconomies of scale?arrow_forward7. A 200-pound steer can be sustained on a diet calling for various of grass and grain. These combinations are shown in the table. proportions Pounds of Grass 50 56 60 68 80 88 Pounds of Grain 80 70 65 60 54 52 a. Plot the isoquant corresponding to the inputs necessary to sustain a 200-pound steer. Comment on its shape. b. The rancher's cost of grass is $.10 per pound; the cost of grain is $.07 per pound. He prefers a feed mix of 68 pounds of grass and 60 pounds of grain. Is this a least-cost mix? If not, what is? Explain. c. The rancher believes there are constant returns to scale in fattening cattle. At current feed prices, what input quantities should he choose if he wants to raise the steer's weight to 250 pounds?arrow_forward. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the company’s total cost of production at various production quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 0 120 — — 1 200 2 240 3 285 4 340 5 425 6 540 On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and…arrow_forward
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