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(1) Suppose average cost (rental price or R) operating a unit fuel pumps at a gas station is $1,800 per day, which includes fuel cost
(1) Suppose average cost (rental price or R) operating a unit fuel pumps at a gas station is $1,800 per day, which includes fuel cost (gasoline or diesel), labor, maintenance and overhead costs. As the table below shows, total output (TP) of a gas station can be measured as gallons of gas sold per day. For example, 800 gallons gas are sold when the station operates only one unit per day. Similarly, total output goes up to 1,550 per day when two units are operated and etc. Table: Units of pumps and TP in a gas station (per day) Unit of Pumps Gallons Sold Unit of Pumps Gallons Sold 1 800 5 3,500 2 1,550 6 4,050 3 2,250 7 4,550 4 2,900 8 5,000 Here we assume the gas station is in a perfectly competitive market. And gasoline (NO diesel) is the ONLY product (output) offered in this gas station. To maximize the gas station's profit, how many units of pumps should be operated when gas price is $3.00 per gallon. If gas price goes up to $3.60 per gallon, how many units should be used
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