Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 14, Problem 4IAPA
To determine
Based on the case study, construct the total variable cost and total cost schedule. Calculate the total fixed cost?
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9
I need help filling out the table and graphing it. Thank you.
K
Matt's candle factory rents equipment for making candles and
hires students
Matt pays $140 a day for equipment and $200 a day for each
student hired
The table shows Matt's total product schedule
Construct Matt's total variable cost and total cost schedules Fill
in the columns in the table.
GEXER
Labor
(workers
per day)
23WN
4
5
Total
product
(candles per day)
33
54
71
85
Total variable
cost
Total
cost
(dollars per day)
Chapter 14 Solutions
Foundations of Economics (8th Edition)
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- . 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.arrow_forwardThe table gives costs at Ahmad's Bike Shop. Unfortunately, Ahmad's record keeping has been incomplete. What is the average total cost of producing 64 bikes? Labor (wor Total fixed costs Total variable Total cost Output (bikes) kers) (dollars) cost (dollars) (dollars) 200 1. 20 100 2 50 3 60 64 Select one a. $9.4 b. $150 O c$6.25 O d $50arrow_forward25 es A firm's long run total costs are given in the table below. Instructions: Round your answers to two decimal places. a. Fill in the long run average total cost column. Output 1 2 3 st in 5 6 7 Long run total cost ($) 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_forward
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