l. (13) Suppose you run a business that produces high end dog food. Your business produces 3,11110 dog food cans per day, and can sell all cans at $2.001can regardless of how much is produced. Your rm currently employs twenty workers, each of whom earns $12.1'hour and work 8 hours per day. Inputs, like the meat for the food and the metal for the can, cost $1.001can. Your overhead expenses, including rent, property taxes, insurance, etc., which does not vary with the number of cans produced, equals $250 per day. a. (3) Calculate your company's current daily profit. Prot = TR TC TR = $2 x 3,11% = $6,11 TC = Labor costs + material costs + xed costs = {$12 x 3 x 21]) + {$1.00 x 3,11%} + $250 = $1921] + $30111] + 2511 = $5,121] Prot = $61101] - $51 '11}: $330 You have to decide whether or not to produce additional cans. To produce more you would need to hire additional workers, all of whom will be paid $12r'hour. Material costs remain constant at $1.00ch and you could sell all additional cans at $2.00fcan. You determine that if you hire a 2]'51 employee, your rm would produce an additional 201.} cans per day, and that the number of additional cans from each additional worker would be decreasing by 30 {so a 22\"'1 employee could produce an additional 170 cans per day, a 23'\" employee could produce an additional 140 cans per day, etc.). b. (3) Calculate the marginal costs associated with producing additional cans for employees 21 though 25. Employee 21 change to Q = 2111]; change to TC = $296; MC =$296f200 = $1.43 Employee 22 change to Q = 1'10; change to TC = $266; MC =$266f 1'10 = $1.56 Employee 23 change to Q = 140; change to TC = $236; MC =$236fl40 = $1.69 Employee 24 change to Q = 1 11]; change to TC = $206; MC =$206f l 10 = $1.8?r Employee 25 change to Q = 80; change to TC = $176; MC =$126f80 = $2.21}