Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting
Goods, which pays Paducah $10 for each finished bat. Paducah's only factors of production are lathe operators and a small building with a lathe. The number of bats it produces per day depends on the number of employee-hours per day, as shown in the table below
Number of bats per dayNumber of employee-hours per day
0……………………………..0
5……………………………..1
10……………………………..2
15……………………………..4
20……………………………..7
25……………………………..II
30……………………………..16
35……………………………..22
a. If the wage is $15 per hour and Paducah's daily fixed cost for the lathe and building is $60, what is the profit-maximizing quantity of bats?
b. What would be the profit-maximizing number of bats if the firm's fixed cost were not $60 per day but only $30?