workers) Quantity of floral arrangements 0 0 1 110 2 200 3 270 4 300 5 320 6 320 Calculate the marginal product of each worker. Calculate the marginal cost, Average total cost, and average variable cost of each level of output.
workers) Quantity of floral arrangements 0 0 1 110 2 200 3 270 4 300 5 320 6 320 Calculate the marginal product of each worker. Calculate the marginal cost, Average total cost, and average variable cost of each level of output.
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 15P
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Question
Gull Roza is a florist specializing in floral arrangements for weddings, graduations, and other events. Gull Roza has a fixed cost associated with space and equipment of $50 per day. Each worker is paid $80 per day. The daily production function for Gull Roza is shown in the accompanying table.
Quantity of Labor (workers) |
Quantity of floral arrangements |
0 |
0 |
1 |
110 |
2 |
200 |
3 |
270 |
4 |
300 |
5 |
320 |
6 |
320 |
Calculate the marginal product of each worker.
Calculate the marginal cost,
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