Sandra and Trey operate a small company thatproduces souvenir footballs. Their fixed cost is $2,000 permonth. Each worker costs $1,000 per month. Their monthlyproduction function for footballs is as given in theaccompanying table.Quantity of labor (workers)2.a.023Quantity of footballs503008001,2001,4001,500:) For each quantity of labor, calculate averagevariable cost (AVC), average fixed cost (AFC),average total cost (ATC), and marginal cost (MC).b.) On one diagram, draw the AVC,ATC, and MC curves.

A company produces football. Their fixed cost is $2000 per month. Each worker cost $1000 per month.

Sandra and Trey operate a small company that produces souvenir footballs. Their fixed cost is $2,000 per month. Each worker costs $1,000 per month. Their monthly production function for footballs is as given in the accompanying table.

Sandra and Trey operate a small company that produces souvenir footballs. Their fixed cost is $2,000 per month. Each worker costs $1,000 per month. Their monthly production function for footballs is as given in the accompanying table.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter19: Labor And Entrepreneurship: The Human Inputs

Section: Chapter Questions

Problem 4TY

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Question

Sandra and Trey operate a small company that
produces souvenir footballs. Their fixed cost is $2,000 per
month. Each worker costs $1,000 per month. Their monthly
production function for footballs is as given in the
accompanying table.
Quantity of labor (workers)
2.
a.
0
2
3
Quantity of footballs
5
0
300
800
1,200
1,400
1,500
:) For each quantity of labor, calculate average
variable cost (AVC), average fixed cost (AFC),
average total cost (ATC), and marginal cost (MC).
b.) On one diagram, draw the AVC,
ATC, and MC curves.

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