Question: The production function for Marty's Frozen Yogurt is given in Problem 2. Marty pays each of his workers $80 per day. The cost of his

The production function for Marty's Frozen Yogurt is given in Problem 2. Marty pays each of his workers $80 per day. The cost of his other variable inputs is $0.50 per cup of yogurt. His fixed cost is $100 per day.
a. What is Marty's variable cost and total cost when he produces 110 cups of yogurt? 200 cups? Calculate variable and total cost for every level of output given in Problem 2.
b. Draw Marty's variable cost curve. On the same diagram, draw his total cost curve.
c. What is the marginal cost per cup for the first 110 cups of yogurt? For the next 90 cups? Calculate the marginal cost for all remaining levels of output.

Step by Step Solution

★★★★★

3.46 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Martys variable cost VC is his wage cost 80 per worker per day and his oth... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

721-B-E-E-P (1370).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

The production function for the automotive and parts industry is q = L0.27 K0.16 M0.61, where M is energy and materials (based on Klein, 2003). What kind of returns to scale does this production...

The production function for a product is given by q = 100KL. If the price of capital is $120 per day and the price of labor $30 per day, what is the minimum cost of producing 1000 units of output?

A Single Buyer in the Labor Market: The text treated extensively the case where market power is concentrated on the supply side but it could equally well be concentrated on the demand side. When a...

The production function for Martys Frozen Yogurt is given in Problem 2. Marty pays each of his workers $80 per day. The cost of his other variable inputs is $0.50 per cup of yogurt. His fixed cost is...

3. The production function for Martys Frozen Yogurt is given in Problem 2. Marty pays each of his workers $80 per day. The cost of his other variable inputs is $0.50 per cup of yogurt. His fixed cost...

Cecilia pays each of her workers $80 per day. The cost of her other variable inputs are $0.50 per cup of yogurt. Her fixed costs (FC) are $100 per day. a. Calculate variable and total costs for every...

Marty pays each of his workers $80 per day. The cost of his other variable inputs is $0.50 per cup of yogurt. His fixed cost is $100 per day. a. What is Martys variable cost and total cost when he...

Quantity of labour (workers) Quantity of Frozen Yoghurt cups Marginal Product (MP) Variable Costs (VC) Fixed Costs (FC) Total Costs (TC=FC+VC) Marginal Cost (MC) Marginal Cost per cup $ $ 0 0 100 1...

Consider a vertical, double-pane window for the conditions prescribed in Problem 9.96. That is, vertical panes at temperatures of T 1 = 22 and T 2 = - 20 C are separated by atmospheric air, and the...

Suppose that you have n values to put into an empty binary search tree. a. In how many different orders can you add the n values to the tree? This is not the same as the number of possible binary...

A firm s common stock is currently selling for $ 3 8 . 9 7 . The last annual dividend paid was $ 1 . 2 6 per share and the market rate of return is 1 3 . 2 percent. At what rate is the dividend...

On which statement would assets and liabilities be reported?

You have bought a $10 ticket in advance for the college soccer game, a ticket that cannot be resold. You know that going to the soccer game will give you a benefit equal to $20. After you have bought...

Amy, Bill, and Carla all mow lawns for money. Each of them operates a different lawn mower. The accompanying table shows the total cost to Amy, Bill, and Carla of mowing lawns. a. Calculate Amy's,...

You are the manager of a gym, and you have to decide how many customers to admit each hour. Assume that each customer stays exactly one hour. Customers are costly to admit because they inflict wear...

Problem 11-1 Investment Outlay Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $20 million, and production and sales will require an initial $3...

The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 6 0 percent of the next quarter's forecast sales. The payables period is 6 0 days. Wages, taxes, and other expenses...

listed above. You have two (2) 20-minute timed attempts. Questions 1 through 8: Complete the missing information regarding the n's listed below. Formulas you will need are: N= En dfG =k-1 . dfE =N-k...