1. Assess data (in the table below) related to a small lawn mowing business.
2. Angela hires students at $40 a day to mow lawns.
3. Regardless of the number of students she hires, Angela leases five lawn mowers for $200 a day.
5. The following table gives the daily output:
6. Labor
7. (students per day)
8. Total Product
9. (lawns cut per day)
10. 0
11. 0
12. 1
13. 20
14. 2
15. 44
16. 3
17. 70
18. 4
19. 94
20. 5
21. 114
22. 6
23. 120
24. Be sure to show your calculations.
25. Construct the average fixed cost, average variable cost, and average total cost schedules.
26. Construct the marginal cost schedule.
27. Check that the gap between total cost and total variable cost is the same at all output levels. Explain why this relationship is so important