Problem
Johnson Tools produces hammers. It has signed a labor contract that guarantees workers a minimum of 30 hours per week of work. The contract also doubles the regular $20 per hour wage for overtime (more than 30 hours per week). Johnson's production technology uses only one variable input, labor. The company can produce two hammers per hour of employed labor. What is its variable cost function? Graph its variable cost curve.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.