13. Suppose Becky is starting a grocery delivery company, which takes grocery orders from customers, goes to the grocery store, buys groceries, and delivers them to the customers' homes. Employees will receive orders from customers on a cell phone for which she pays $5 per day for the service. To make deliveries to customers, she will rent a delivery van which seats 2 people for $75 per day. She plans on hiring between 1 and 6 employees to take the orders, do the grocery shopping and make the deliveries. She will pay each worker $100 per day in wages. The following is the business' production function: Labor 1 2 3 4 5 6 Output Marginal Variable Total (Total Product Cost Cost Product) 0 4 9 13 16 18 19 Based on the table above, at what price will the competitive firms profits exactly equal zero? a. $21.11 b. $22.22 Average Average Marginal Variable Total Cost Cost Cost c. $25 d. $29.23 e. None of the above.

13. Suppose Becky is starting a grocery delivery company, which takes grocery orders from customers, goes to the grocery store, buys groceries, and delivers them to the customers' homes. Employees will receive orders from customers on a cell phone for which she pays $5 per day for the service. To make deliveries to customers, she will rent a delivery van which seats 2 people for $75 per day. She plans on hiring between 1 and 6 employees to take the orders, do the grocery shopping and make the deliveries. She will pay each worker $100 per day in wages. The following is the business' production function: Labor 1 2 3 4 5 6 Output Marginal Variable Total (Total Product Cost Cost Product) 0 4 9 13 16 18 19 Based on the table above, at what price will the competitive firms profits exactly equal zero? a. $21.11 b. $22.22 Average Average Marginal Variable Total Cost Cost Cost c. $25 d. $29.23 e. None of the above.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 39P: A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the...

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