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Alicia Gregory owns a goot massage business. She leases 4 computer-controlled massage booths, for which shebpays $125 per day. She cannot increase the number machines

  • Alicia Gregory owns a goot massage business. She leases 4 computer-controlled massage booths, for which shebpays $125 per day. She cannot increase the number machines she leases without giving the manufacturer 3 months notice. She can hire as many workers as she wants at a cost of $75 per worker. These are the only two inputs she uses in her business. Use this information to fill in the columns in the above table

Quantityof Workers Quantity of foot

massages per

day

0 0

1 10

2 25

3 45

4 60

5 70

Fixed cost Variable cost

Tota cost Average total cost

Marginal cost

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