a-d

Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting Goods, which pays Paducah $10 for each finished bat. Paducah's only factors of production are lathe operators and a small building with a lathe. The number of bats per day it produces depends on the number of employee-hours per day, as shown in the table below. a. The wage is $15 per hour and Paducah's daily fixed cost for the lathe and building is $50. Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Express marginal cost values rounded to two decimal places. Profit Number of employee- hours per day Total revenue Total labor. cost Total cost 2 (bats per day) Harginal cost per bat ($ per day) ($ per day) (5 per day) (5 per day) 0 0 1 2 4 GMB and MCD bats 5 10 15 30 35 30 35 20 25 7 11 16 22 15 20 7 25 11 30 16 ces 35 22 What is the profit-maximizing quantity of bats (note the values for MR and MC)? [ bats. b. What would Paducah's profit-maximizing level of output be if the government imposed a tax of $10 per day on the company? (Hint. Think of this tax as equivalent to a $10 increase in fixed cost.): bats c. What would Paducah's profit-maximizing level of output be if the government imposed a tax of $2 per bat instead of the $10 tax of part b)? (Hint Think of this tax as a $2 per bat increase in the firm's marginal cost.) [ bats d. Why do the taxes in parts b and c have such different effects? A tax of $10 per day does not affect marginal cost, while a tax of $2 per bat does. OA tax of $10 per day affects marginal cost, while a tax of $2 per bat does not. OA tax of $10 per day affects the firm's profit, while a tax of $2 per bat does not. OA tax of $10 per day doesn't affect the firm's profit, while a tax of $2 per bat does