The only vansble mput a jantorial service fim uses to clean offices s workors who are paid a wagow of $10 an hout Each worker cat clean four offices in an hout Use math to determine thevanable cost, the hverage variable cost, and the marginal cost of deaning one more office27.0020 00-18.00The vanable cost of deaning the frst office52 50 average vanable cost of ceanng one moreoffices20 and marginal cost of deaning on more office is $250 Eer your responsemunded to two decamal places)16.00-140012001 Ung the ne drawing tool, gaph the varable cost curve Label thn curve VC10 002 Ung the e wng tool, graph the average variable cost curve Label tn curve AVC3 ng the e doing tool grph the argnal cost curve Label s curve MG16.00Carefuty fow the intuchos aboe, and onty driw the equred olyecta4.00200Quaity Oic deanedCest Coetcer unt S

W Output VC AVC MC 0 0 0 1 4 10 2.5 2.5 2 8 20 2.5 2.5 3 12 30 2.5 2.5 4 16 40 2.5…

Answered: nly varable nputa jantorial service fm…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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Similar questions

Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
In choosing a production technology, how will firms react if one input becomes relatively more expensive?
HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?
Continuing from Exercise 7.1, the films factory sits on land owned by the firm that it could rent for 30,000 per year. What was the films economic profit last year?
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
What is a production technology?
Are fixed costs also sunk costs? Explain.
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
What is the difference between a fixed input and a variable input?

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