Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. The relationship between marginal product and marginal cost Lucia's Burrito Stand in a small matsurant that sells burritos. For Lucie, stores are a fixed

image text in transcribed
6. The relationship between marginal product and marginal cost Lucia's Burrito Stand in a small matsurant that sells burritos. For Lucie, stores are a fixed input and workers are variable inputs, Assume that labor in Luce's only variable cost. Lucia has a fixed cost of $160 per day and pays each of her workets $100 per day. Luca's total product schedule and total cost at each level of labor are presented in the following table. Fill in the blanked to complete the Marginal Physical Product of Labor column for each worker and the Marginal Cost column of each level of isbar. Think Marginal cost is the change in total cost divided by the change in the quangty of output, You can calculate it here by dividing the increase in till cair from bring fine more worker by the marginal physical product from hiring one more worker.) quantity of Labor Quantity of Output Marginal Physical Product of Labor Total Cost Marginal Cost (Workers) (Burritos per day) (Burritos per day) (Dollars per day) (Dollars per burrito) 1 100 1300 190 $300 YYYVY 1400 225 $500 235 $600 When Fring 3 or mors workers, Loca's Burrito Stand faces marginal returns to labor Over the range of workers for which the marginal product of labor in Increasing, Lucia's humto Stand faces

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Local Disaster Resilience Administrative And Political Perspectives

Authors: Ellen Russell, Ashley D Ross

1st Edition

1135910618, 9781135910617

More Books

Students also viewed these Economics questions