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 dally fixed cost for the lathe and bullding is $50. Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign ( ) in front of those numbers. Express marginal cost values rounded to the nearest penny (two decimal places) What is the profit-maximizing quantity of bats (note the values for MR and MC)? bats. b. What would Paducah's profit-maximizing level of output be if the goi (Hint Think of this tax as equivalent to a $10 increase in fxed 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) bats d. Why do the taxes in parts b and c ave such different effects? A tax of $10 per day affects the firm's profit, while a tax of $2 per bot does not. A tax of $10 per day affects marginal cost, while a tax of $2 per bat does not. A tax of $10 per day doesn't affect the firm's profit, while a tax of $2 per bat does. A tax of $10 per day does not affect marginal cost, while a tax of $2 per bat does. 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 dally fixed cost for the lathe and bullding is $50. Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign ( ) in front of those numbers. Express marginal cost values rounded to the nearest penny (two decimal places) What is the profit-maximizing quantity of bats (note the values for MR and MC)? bats. b. What would Paducah's profit-maximizing level of output be if the goi (Hint Think of this tax as equivalent to a $10 increase in fxed 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) bats d. Why do the taxes in parts b and c ave such different effects? A tax of $10 per day affects the firm's profit, while a tax of $2 per bot does not. A tax of $10 per day affects marginal cost, while a tax of $2 per bat does not. A tax of $10 per day doesn't affect the firm's profit, while a tax of $2 per bat does. A tax of $10 per day does not affect marginal cost, while a tax of $2 per bat does
