Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5) Below are widget production details at Super Duper Production Company. Management has been accessing costs and want to create production efficiencies as an expected
5) Below are widget production details at Super Duper Production Company. Management has been accessing costs and want to create production efficiencies as an expected recession approaches. Fixed costs are $1325/month and labourers cost $800/month. You are to i) calculate and complete the table; ii) prepare the graph showing the MC and ATC curves based on the calculated values as you prepare your presentation for management. (3+2+5 marks) Super Duper Production Company Labourers Output FC VC TC MC ATC 0 0 1 280 2 540 3 770 4 960 5 1130 6 1270 7 1380 1450 Price iii) Points for management discussion. 12.00 Recommendations: The number of labourers to be 10.00 retained should be which 8.00 will result in a MC of $ and an ATC of $ per widget. 6.00 Based on these calculations we will produce widgets at a total 4.00 cost of $ 2.00 0 300 600 900 1200 1500 1800 Quantity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started