SSSSS 1. Refer to Table below. Mr. AI-Maashani owns high end wedding cake baking business in Salalah. He leases/rents 4 high tech computer-controlled cake baking machines, for which he pays RO125 per day. He cannot increase the number of machines he leases/rents. He can hire as many workers as he wants at a cost of R075 per day per worker. These are the only two inputs (cake baking machines and labour) he uses in his cake baking business. Use this information to fill in the columns in the above table. Table: Mr. Al-Maashani wedding cake baking business cost structure Number of Number of cakes Fixed workers Variable Total per day Average total cost Marginal cost(wage re cost cost cost 125 200 275 1375 350 425 106 25 500 4253 10 200 75 116.66 75 75 125 75 25 125 150 3. 45 125 225 125 4. 60 800 125 70 375 1-00

SSSSS 1. Refer to Table below. Mr. AI-Maashani owns high end wedding cake baking business in Salalah. He leases/rents 4 high tech computer-controlled cake baking machines, for which he pays RO125 per day. He cannot increase the number of machines he leases/rents. He can hire as many workers as he wants at a cost of R075 per day per worker. These are the only two inputs (cake baking machines and labour) he uses in his cake baking business. Use this information to fill in the columns in the above table. Table: Mr. Al-Maashani wedding cake baking business cost structure Number of Number of cakes Fixed workers Variable Total per day Average total cost Marginal cost(wage re cost cost cost 125 200 275 1375 350 425 106 25 500 4253 10 200 75 116.66 75 75 125 75 25 125 150 3. 45 125 225 125 4. 60 800 125 70 375 1-00

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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