Question
1. PDQ Corp produces widgets and leases four (4) widget-making machines for each of which it pays $125 per day. PDQ cannot increase the number
1. PDQ Corp produces widgets and leases four (4) widget-making machines for each of which it pays $125 per day. PDQ cannot increase the number machines it leases without giving the manufacturer 3 months' notice. It can hire as many workers as it wants at a cost of $75 per day per worker. These are the only two inputs PDQ uses in its business. Use this information to fill in the columns in the table below. Number of workers Quantity of widgets / day Fixed cost Variable cost Total cost Average total cost Marginal cost 0 0 1 10 2 25 3 45 4 60 5 70
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