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( 1 Illustrate the connection between Sue's AP . MP AVCand MC curves in graphs like those in onLab Chapter 13 Study Plan and get instant feedback . Fig. 13.6 ng . If the 5 . Calculate the marginal product of labour and ( 12 Sue's Surfboards rents a factory building . If the rent is increased by $200 a week and other draw the marginal product curve remain the same , how do Sue's Surfboards short a . Over what output range does Sue's Surfboards run average cost curves and marginal cost curve enjoy the benefits of increased specialisation change ? and division of labour b . Over what output range does the firm ( 3 ) Workers at Sue's Surfboards negotiate a wage increase of $100 a week for each worker . If Father experience diminishing marginal product o things remain the same , explain how Sue's labour ? Surfboards short - run are average cost curves and Over what output range does the firm marginal cost curve change experience an increasing average product o 14 . Grain Prices Go the Way of the Oil Price labour but a diminishing marginal product of Every morning millions of people confront the labour ? latest trend in in commodities markets at their 7 . Explain how it is possible for a firm to experience kitchen table Rising prices for crops have begun simultaneously an increasing average product by to drive up the cost of breakfast diminishing marginal product . Source : The Economist , 21 July 2007 Business Boot Camp Explain how the rising price of crops affects the At a footwear company called Caboots , sales rose average total cost and marginal cost of producing breakfast cereals from $160 000 in 2000 to $2.3 million in 2006 , but in 2007 sales dipped to $15 million Joey Long - Run Cost ( Study Plan 13 4 ) and Priscilla Sanchez , who run Caboots , blam the decline partly on a flood that damaged th Use the table in Problem 3 and the following information to work Problems 15 and 16 firm's office and sapped morale Source : CNN , 23 April 2008 Sue's Surfboards buys a second plant and the ourput If the Sanchezes are correct in their assumptions produced by each worker increases by 50 per cen he total fixed cost of operating each plant is $1 000 and the prices of footwear didn't change a week . Each worker is paid $500 a week Explain the effect of the flood on the total 15 . Calculate the average total cost of producing product curve and marginal product curve at 180 and 240 surfboards a week when Sue's Caboots Surfboards operates two plants . Graph these b . Draw a graph to show the effect of the flood points and sketch the ATC curv on the total product curve and marginal 16 . a . To produce 180 surfboards a week , is it product curve at Caboots efficient to operate one or two plants To produce 160 surfboards a week , is it Short - Run Cost Study Plan 13.31 ficient for Sue's to operate one or two plants Use the following data to work Problems to 13 Use the following table to work Problems 17 to 20 Sue's Surfboards , in Problem 3 , hires workers at $500 The table shows the production function of Jackie's Canbe Rides . week and its total fixed cost is $1 000 a week . Calculate total cost , total variable cost and for Output brides per day) ixed cost of each output in the table Plot these workers per do Plant 1 Plant 2 Plant 3 Plant 4 points and sketch the short - run total cost curves 20 40 55 65 passing through them . ( 9 Calculate average total cost average fixed cost 40 60 75 85 65 75 90 100 average variable cost and marginal cost of each output in the table Plot these points and sketch 75 85 100 10 the short - run average and marginal cost curves 20 30 40 passing through them Jackie's pays $100 a day for each canoe it rents and $50 a day for each canoe operator in hires