A. What is AP of four drivers? B. What is the MP of the 6th driver? C. What is the AVC of providing 80 rides per week? D. What is the MC of increasing delivery services from 52 to 68 rides per week? E. What is the additional amount of output gained from hiring the fourth worker?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
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2. Consider the following data of Speedy Delivery Service. Speedy DS needs to find out the
productivity and associated cost of hiring various levels of drivers. Output is measured in
deliveries to clients (i.e., # of delivery rides to and from client destination) per week and
each driver is paid P4000 per week (Speedy's only variable cost). Complete the table
below and answer the following questions.
MP
Labor
0
1
2
3
4
5
6
7
8
Output
0
8
18
32
52
68
76
80
82
AP
AVC
MC
A. What is AP of four drivers?
B.
What is the MP of the 6th driver?
C.
What is the AVC of providing 80 rides per week?
D.
What is the MC of increasing delivery services from 52 to 68 rides per week?
E. What is the additional amount of output gained from hiring the fourth worker?
Transcribed Image Text:2. Consider the following data of Speedy Delivery Service. Speedy DS needs to find out the productivity and associated cost of hiring various levels of drivers. Output is measured in deliveries to clients (i.e., # of delivery rides to and from client destination) per week and each driver is paid P4000 per week (Speedy's only variable cost). Complete the table below and answer the following questions. MP Labor 0 1 2 3 4 5 6 7 8 Output 0 8 18 32 52 68 76 80 82 AP AVC MC A. What is AP of four drivers? B. What is the MP of the 6th driver? C. What is the AVC of providing 80 rides per week? D. What is the MC of increasing delivery services from 52 to 68 rides per week? E. What is the additional amount of output gained from hiring the fourth worker?
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