Question

In: Economics

Table 1 Number of Workers Sheets of Metal per day (in pounds) 0 0 1 10...

Table 1

Number of Workers

Sheets of Metal per day (in pounds)

0

0

1

10

2

22

3

32

4

40

5

46

6

50

  1. Assume that Joe’s fixed cost are $2,000, and his variable cost per worker is $400.
    1. Calculate the cost data for Joe’s roll forming company using Table 2 below.
    2. For each column, explain what is happening to Joe’s costs.
    3. Draw one graph showing Joe’s TC.
    4. Draw another graph showing Joe’s AFC, AVC, ATC, and MC.

Solutions

Expert Solution

a)

Number of workers(L) Sheets of metal per day(Q) FC($) VC($) TC($) = FC+VC AFC($) = FC/Q AVC($) = VC/Q ATC($) = TC/Q MC($) = ∆TC/∆Q
0 0 2000 0 2000
1 10 2000 400 2400 200.00 40.00 240.00 40.00
2 22 2000 800 2800 90.91 36.36 127.27 33.33
3 32 2000 1200 3200 62.50 37.50 100.00 40.00
4 40 2000 1600 3600 50.00 40.00 90.00 50.00
5 46 2000 2000 4000 43.48 43.48 86.96 66.67
6 50 2000 2400 4400 40.00 48.00 88.00 100.00

b) FC is constant over all level of output.

     VC increases as output increases

     TC increases as output increases

     AFC decreases continuously as output increases

     AVC decreases upto a certain level of output and after that it increases.

      ATC decreases upto a certain level of output and after that it increases.

      MC decreases upto a certain level of output and after that it increases.

c)

d)


Related Solutions

Table 1 Number of Workers Sheets of Metal per day (in pounds) 0 0 1 10...
Table 1 Number of Workers Sheets of Metal per day (in pounds) 0 0 1 10 2 22 3 32 4 40 5 46 6 50 If the average total cost of producing 12 dozen sheets of metal is $6, and the average total cost of producing 13 dozen muffins is $7, then how much is the marginal cost of producing the 13thdozen metal sheet? Explain the formulas you use and show your math. Assume that Joe’s fixed cost are...
Table 3: Cars Sold per Day # Per Day # Days 0 35 1 75 2...
Table 3: Cars Sold per Day # Per Day # Days 0 35 1 75 2 55 3 25 4 10 For example, 35 of the days, no cars were sold. For 75 days one was sold. How many days were used in this study? Based on this study, what was the expected number of cars sold per day? What is the probability of selling 5 cars in a day? What was the variance in the expected number of cars...
Please answer it with explanation A      Table 1 Output (units per day) 0 10 20 30 Total...
Please answer it with explanation A      Table 1 Output (units per day) 0 10 20 30 Total cost (dollars per day) $40 $54 $62 $80 For the output levels in Table 1, the minimum of the average variable cost curve occurs at a production rate of                 A)    Zero units per day.                  B)    10 units per day.          C)    20 units per day.          D)    30 units per day. B      Refer to Table 2 below Table 2 Units of Labor Units of Output Marginal Product 0 0 1 30...
The data in the table show the number of pounds of bananas sold per week at...
The data in the table show the number of pounds of bananas sold per week at a grocery store when the banana display was positioned in the produce, milk, and cereal sections of the store. a) Perform a one-way ANOVA using alphaαequals=0.05 to determine if there is a difference in the average number of pounds of bananas sold per week in these three locations. b) If warranted, perform a multiple comparison test to determine which pairs are different using alphaαequals=0.050...
The table shows the number of computers per household in the United States. Computers 0 1...
The table shows the number of computers per household in the United States. Computers 0 1 2 3 4 5 Number of households (in millions) 27 47 24 10 4 2 Construct a probability distribution. Graph the probability distribution using a histogram and describe its shape. Find the mean, variance, and standard deviation of the probability distribution and interpret the results. Find the probability of randomly selecting a household that has at least four computers.
A pig weighing 200 pounds gains 5 pounds per day and costs 45 cents a day...
A pig weighing 200 pounds gains 5 pounds per day and costs 45 cents a day to keep. The market price for pigs is 65 cents per pound, but is falling 1 cent per day. Do a sensitivity analysis of the time to wait to sell (denoted by t) to the keeping cost k. Derive a general expression of S ( t , k ) and evaluate it at k = 0.45 keeping all other constants the same, g =...
The frequency distribution shown in the following table lists the number of hours per day a...
The frequency distribution shown in the following table lists the number of hours per day a randomly selected sample of teenagers spent watching television. Where possible, determine what percent of the teenagers spent the following number of hours watching television. (Round your answers to one decimal place. If not possible, enter IMPOSSIBLE.) Hours per day Number of Teenagers 0 ≤ x < 1 17 1 ≤ x < 2 31 2 ≤ x < 3 24 3 ≤ x <...
The table identifies the total output produced for each given number of workers. Workers Output 1...
The table identifies the total output produced for each given number of workers. Workers Output 1 100 2 190 3 270 4 340 5 400 6 450 7 490 At a nominal wage of $75 per unit labor and a price of output equal to $1 per unit, how many workers are hired?     Enter a whole number. Enter increase, decrease, or same for the rest of the questions below. If the wage and price remain constant, an increase in labor...
The average number of pounds of meat that a person consumes per year is 218.4 pounds....
The average number of pounds of meat that a person consumes per year is 218.4 pounds. Assume that the standard deviation is 25 pounds and the distribution is approximately normal. a) Find the probability that a person selected at random consumes less than 224 pounds of meat per year. Calculate the z-score manually, and use StatCrunch or the Standard Normal Table to calculate the probability, rounding to four decimal places. (4 points) b) If a sample of 40 individuals were...
The following table shows the weights​ (in pounds) and the number of hours slept in a...
The following table shows the weights​ (in pounds) and the number of hours slept in a day by a random sample of infants. Test the claim that Mnot equals≠0. Use alphaαequals=0.10.1. Then interpret the results in the context of the problem. If​ convenient, use technology to solve the problem.    ​Weight, x 8.28.2 10.110.1 9.99.9 7.17.1 6.96.9 11.111.1 10.910.9 15.115.1 Hours​ slept, y 14.814.8 14.714.7 14.114.1 14.214.2 13.913.9 13.213.2 13.813.8 12.412.4 1. Identify the null and alternative hypotheses. 2. Calculate the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT