Refer to Table 11-6. Alicia Gregory owns a foot massage business. She leases 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.
Quantity of workers Quantity of foot massages per day Fixed cost Variable cost Total cost Average total cost Marginal cost
0 0 $500 $0 $500 --- ---
1 10 500 75 575 57.50 $7.50
2 25 500 150 650 26.00 5.00
3 45 500 225 725 16.11 3.75
4 60 500 300 800 13.33 5.00
5 70 500 375 875 12.50 7.50
You might also like to view...
As the number of firms increases in a market, the differences between the Cournot, Stackelberg, and price-taking market structures
A) decreases. B) increases. C) remains the same. D) cannot be determined.
Good A has an income elasticity equal to -0.8 and a cross price elasticity with respect to Good B of -0.75 . Then: a. Good A is an inferior good and Goods A and B are substitutes. b. Good A is an inferior good and Goods A and B are complements. c. Good A is a normal good and Goods A and B are substitutes
d. Good A is a normal good and Goods A and B are complements.
In summary, many of the government's farm programs are an attempt to shift the
a. demand curve for farm goods to the right b. demand curve for farm goods to the left c. supply curve for farm goods to the left d. supply curve for farm goods to the right e. supply and demand curves for farm goods to the right
Refer to the accompanying table. It is clear that diminishing returns sets in after ________ workers per day.Number of Workers Per DayOutput Per Day001328315424532639
A. 5 B. 3 C. 4 D. 6