Lil Aeroplane Kit Company makes paper airplane kits for first year engineering classes. Below is a table portraying some production scenarios based on past experience
Lil Aeroplane Kit Company makes paper airplane kits for first year engineering classes. Below is a table portraying some production scenarios based on past experience of the industry. The fixed costs are $370/day and semi-skilled labourers cost $200/day. Labourers ATC 1 2 3 4 5 525 6 588 7 637 8 672 Assignment: i) Complete the calculations in the table above. (4 5 marks) ii) Graph the marginal cost and average total cost 4 curves on the graph at the left. (2 marks] 3 ifi) Marginal cost (MC) curve intersects the average total cost (ATC) curve when MC is $ and 2 ATC is $ Based on these numbers, at this production point Lil Aeroplane Kit Company will be employing labourers and incur total costs of $ (4 marks) 0 100 200 300 400 500 600 700
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