Labors (workers per week) Output (surfboards per week)

1 30

2 70

3 120

4 160

5 190

6 210

7 220

Sue's Surfboards buys a second plant and the output produced by each worker increases by 50 percent.The total fixed cost of operating each plant is $1,000 a week. Each worker is paid $500 a week.

15. Calculate the average total cost of producing 180 and 240 surfboards a week when Sue's Surfboards operates two plants. Graph these points and sketch the ATC curve.

16. a. To produce 180 surfboards a week, is it efficient to operate one or two plants?

b. To produce 160 surfboards a week, is it efficient for Sue's to operate one or two plants?