
1. The Al-Maskri Company in Seeb makes flower pots and receives RO 10 for each finished pot. Mr. Al-Maskri’s only factors of production are flower pot machine operators (labor) and a small building where the laborers work from. The number of flower pots per day the company produces depends on the number of employee-hours per day as shown below. The wage is RO 15 per hour.
Number of pots per day Number of employee-hours per day
0 0
5 1
10 2
15 4
20 7
25 11
30 16
35 22
(a) Mr. Al-Maskri’s daily fixed cost for the flower pot making machine and building is RO 60. Complete the following Table showing total revenue, variable cost, total cost, and daily profit for various quantities of daily flower pot production.
Quantity of
Pots per day Total Revenue
RO per day Variable Costs
RO per day Total Costs
RO per day Profit
RO per day
0 0 0 60 -60
5 75 -25
10
15
20 105
25
30 300
35 -40
(b) The profit maximizing quantity of pots is __________ and at that number of pots the daily profit made is RO ________________________.


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