1. Andy's Beach Gear rents snorkels for $10 each. From past experience Andy knows how many rentals his workers can do, which is shown in the table below. (25 points) Workers No. of Rentals 100 130 155 175 190 200 205 a. In the third column, calculate the MPL (marginal product of labor) for each worker. (5pt] b. In the fourth column, calculate the VIMPL (value of marginal product of labor) for each worker. (5pt) c. At a wage of $150, how many workers should Andy hire? (5pt) d. What is the average product of labor when Andy employs five workers? (5pt) e. Using the data in the table construct a labor demand curve. (5pt)$price/cost O 5 A 3 2 100 200 300 400 500 Qty (hot dogs per day 2. The graph above shows the cost curves of Delvin's Hot Dogs. Delvin has a hot dog stand in a busy midtown area with similar stands on every block. The market price of a hot dog is $3. Answer the questions below and show all calculations where necessary. (15 points) a. What is Delvin's profit-maximizing output per day? Explain your answer. (Spt) b. What is Delvin's accounting profit per day? (5pt) c. How will Delvin's price and profit change in the long-run, assuming no change in technology or demand? (5pt) 3. Allstate Heating Company has $12,000 fixed costs each week. Its total variable costs change as the number of water heaters produced each week changes, as follows: (30 points) Water Heaters Total Variable Cost $600 1,800 3,600 6,000 9,000 12,600 16,800 21,600 27,000 33,000 a. For each level of output, calculate total cost, marginal cost, average fixed cost, average variable cost and average total cost. (10pt) b. Using Microsoft Excel, create one graph showing the marginal cost, average fixed cost, average variable cost and average total cost. (10pt)C. Explain why the average total cost curve has a U shape, when neither of its components, average fixed cost nor average variable cost, does. (5pt) d. Allstate paid $5,000 for researching the area before setting up its business location. How does this cost figure into its costs of production? (5pt) Jordan eats two types of fruits - oranges and mangos. He has a budget of $60 to spend on fruits per month. The price of oranges is $4 per bag and that of mangos is $12 per bag. With this information, answer the questions below. (30 points] a) Graph Kyle's budget line by plotting oranges on the horizontal axis and find the slope of his budget line. (10pt) b) Write down the budget equation for Kyle's consumption of fruits (oranges on the horizontal axis). (5pt) c) Suppose the price of oranges has doubled. Show this effect graphically (initial + new budget line) and calculate the slope of the new budget line (oranges on the horizontal axis). (10pts) d) Suppose Kyle now reduces the money spent on fruits to $50. Show this budget line change on a graph (oranges on the horizontal axis; price of oranges is $4 and price of mangos is $12). (5pt)