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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

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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 $60. Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Enter your responses as whole numbers. Marginal Q (bats per day) Profit (5 per day) cost per bat Number of employee- Total Total labor hours per revenue cost Total cost day (s per day) (s per day) (s per day) @ 1 SO 15 2 100 30 4 150 60 7 200 DOS 11 250 165 16 300 240 22 350 330 5 10 15 20 25 30 35 6 9 12 15 18 What is the profit-maximizing quantity of bats? 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): d. Why do the taxes in parts and chave such different effects? bats

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