Table 4 below shows the production of good X by a particular firm. Suppose that the

wage rate of labour is $12 per hour, and that the cost of each machine is $20 per

day regardless of the quantity of good X produced.

Table 4

Quantity of

Quantity of

Quantity of good )>

Workers

machines

produced per hour

5

10

20

35

55

70

80

Suppose that the firm operates for 8 hours per day.

a) Calculate the firm's total cost per,day if it produces good X ata rate of 70 units

per hour. Show your working andbriefly explain your reasoning.

b) Calculate the marginal cost of increasing the quantity of good X produced from

35 units per hour to 55 units per hour. Show your working and briefly explain your

reasoning.

c) Suppose that the price of good X is currently $0.80 per unit. If this firm is

operating in a perfectly competitive market, what is its profit-maximising output

level per day? You may provide your answer as a range of quantity of good X.

Show your working and briefly explain your reasoning.

Review View Help (End of your answer to Question 3) Question 4 (Total: 10 marks) Table 4 below shows the production of good X by a particular firm. Suppose that the wage rate of labour is $12 per hour, and that the cost of each machine is $20 per day regardless of the quantity of good X produced. Table 4 Quantity of Quantity of Quantity of good X workers machines produced per hour 2 5 IN 10 3 20 35 NNNNNN 5 55 70 80 Suppose that the firm operates for 8 hours per day. a) Calculate the firm's total cost per day if it produces good X at a rate of 70 units per hour. Show your working and briefly explain your reasoning. (3 marks) b) Calculate the marginal cost of in creasing the quantity of good X produced from 35 units per hour to 55 units per hour. Show your working and briefly explain your reasoning. (3 marks) c) Suppose that the price of good X is currently $0.80 per unit. If this firm is operating in a perfectly competitive market, what is its profit-maximising output level per day? You may provide your answer as a range of quantity of good X. Show your working and briefly explain your reasoning. (4 marks) (Hint. You should extend Table 4 yourself to include additional columns to facilitate your calculation). (Type-write your answer to Question 4 below this Imet FOC O 9 W DOLL