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Frances's Burrito Stand is a small restaurant that sells burritos. For Frances, stoves are a fixed input and workers are variable inputs. Assume that labor is Frances's only variable cost. Frances has a fixed cost of $60 per day and pays each of her workers $60 per day. Frances's total product schedule and total cost at each level of labor are presented in the following table. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal physical product from hiring one more worker.) Quantity of Labor (Workers) 0 1 2 3 4 5 Quantity of Output (Burritos per day) 0 20 50 70 85 95 Marginal Physical Product of Labor (Burritos per day) AAAAA When hiring 3 or more workers, Frances's Burrito Stand faces Total Cost (Dollars per day) $60 $120 $180 $240 $300 $360 marginal returns to labor. Over the range of workers for which the marginal product of labor is decreasing, Frances's Burrito Stand faces Marginal Cost (Dollars per burrito) AAAAA $ $ $ $ $ marginal cost.

Frances's Burrito Stand is a small restaurant that sells burritos. For Frances, stoves are a fixed input and workers are variable inputs. Assume that labor is Frances's only variable cost. Frances has a fixed cost of $60 per day and pays each of her workers $60 per day. Frances's total product schedule and total cost at each level of labor are presented in the following table. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal physical product from hiring one more worker.) Quantity of Labor (Workers) 0 1 2 3 4 5 Quantity of Output (Burritos per day) 0 20 50 70 85 95 Marginal Physical Product of Labor (Burritos per day) AAAAA When hiring 3 or more workers, Frances's Burrito Stand faces Total Cost (Dollars per day) $60 $120 $180 $240 $300 $360 marginal returns to labor. Over the range of workers for which the marginal product of labor is decreasing, Frances's Burrito Stand faces Marginal Cost (Dollars per burrito) AAAAA $ $ $ $ $ marginal cost.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4PA
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Frances's Burrito Stand is a small restaurant that sells burritos. For Frances, stoves are a fixed input and workers are variable inputs. Assume that labor is Frances's only variable cost. Frances has a fixed cost of $60 per day and pays each of her workers $60 per day. Frances's total product schedule and total cost at each level of labor are presented in the following table. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal physical product from hiring one more worker.) Quantity of Labor (Workers) 0 1 2 3 4 5 Quantity of Output (Burritos per day) 0 20 50 70 85 95 Marginal Physical Product of Labor (Burritos per day) When hiring 3 or more workers, Frances's Burrito Stand faces Total Cost (Dollars per day) $60 $120 $180 $240 $300 $360 marginal returns to labor. Over the range of workers for which the marginal product of labor is decreasing, Frances's Burrito Stand faces Marginal Cost (Dollars per burrito) $ $ $ $ $ marginal cost.
Transcribed Image Text:Frances's Burrito Stand is a small restaurant that sells burritos. For Frances, stoves are a fixed input and workers are variable inputs. Assume that labor is Frances's only variable cost. Frances has a fixed cost of $60 per day and pays each of her workers $60 per day. Frances's total product schedule and total cost at each level of labor are presented in the following table. Fill in the blanks to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal physical product from hiring one more worker.) Quantity of Labor (Workers) 0 1 2 3 4 5 Quantity of Output (Burritos per day) 0 20 50 70 85 95 Marginal Physical Product of Labor (Burritos per day) When hiring 3 or more workers, Frances's Burrito Stand faces Total Cost (Dollars per day) $60 $120 $180 $240 $300 $360 marginal returns to labor. Over the range of workers for which the marginal product of labor is decreasing, Frances's Burrito Stand faces Marginal Cost (Dollars per burrito) $ $ $ $ $ marginal cost.
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