Suppose Ralph has a chicken processing plant with the total . . . Quantity of cost functlon shown 1n the accopmanylng table. Chickens 0 800 What is Ralph's xed cost? 1,000 1,000 2,000 1,200 3,000 4,000 6,000 7,000 Ralph pays his workers $100 each, and labor is the only 8,000 variable cost. At a quantity of 7000 chickens, how many Total Cost ($) workers does he hire? number of workers Ralph hires: :] Why does total cost increase faster as output increases? Q There are diminishing returns to labor. 0 There are increasing returns to scale. 2,000 1,200 3,000 1,400 4,000 1,500 Ralph's fixed cost: $ 5,000 1,600 6,000 1,800 7,000 2,000 alph pays his workers $100 each, and labor is the only 8,000 2,400 ariable cost. At a quantity of 7000 chickens, how many yorkers does he hire? umber of workers Ralph hires: Why does total cost increase faster as output increases? There are diminishing returns to labor. There are increasing returns to scale. The variable cost increases. O The fixed cost increases.The tables show the utility Parker experienced from consuming varying quantities of waffles and pancakes. Assume that waffles cost $2.00 each, pancakes cost $1.00 each, and that Parker has $8.00 to spend on these two goods. Since Parker cannot afford more than four waffles or eight pancakes, the utility is given only for quantities smaller than these. Quantity Total utility Marginal utility of pancakes of pancakes of pancakes Quantity Total utility Marginal utility 1 40 40 of waffles of waffles of waffles N 70 30 100 100 w 90 20 N 180 80 4 105 15 3 240 60 U 115 10 4 270 30 120 5 J 123 3 125 2 Given his budget constraint, determine what quantities of waffles and pancakes Parker will consume to maximize utility. quantity of waffles: waffles quantity of pancakes: pancakesSam allocates his income between milk and cereal. Milk costs Milk (gallons) M Umk Cereal (boxes) M Umeal $2.50 per gallon, and cereal costs $5.00 per box. Sam has $50 0 each week to spend on both goods. The table shows Sam's 2 marginal utility (MU) for varying levels of milk and cereal 4 consumption. 6 Given the information provided, how should Sam allocate his 8 income between milk and cereal to arrive at the optimal 10 consumption bundle? 12 14 1 6 Sam should purchase gallons of nnlk 20 3 10 8