Problem
Jose's body board factory pays $60 a day for equipment and $200 a day to each student it hires. The table sets out Jose's total product schedule.
|
Labor Workers (per day)
|
Total Product (body boards (per day)
|
|
0
|
0
|
|
1
|
20
|
|
2
|
44
|
|
3
|
60
|
|
4
|
72
|
A. Construct Jose's' s total variable cost and total cost schedules. What does the difference between total cost and total variable cost at each output equal?
B. Construct the average fixed cost, average variable cost, and average total cost schedules and the marginal cost schedule.
C. At what output is Jose's average total cost at a minimum? At what output is Jos's average variable cost at a minimum?
D. Construct the average fixed cost, average variable cost, and average total cost schedules and the marginal cost schedule.