Question
The table below demonstrates the operations of Phil's Food Truck, a small catering company.They have a lease on the truck that costs $500 per day
The table below demonstrates the operations of Phil's Food Truck, a small catering company.They have a lease on the truck that costs $500 per day that they must pay whether or not they produce any meals.They can hire workers at a cost of $200 per worker per day.The table displays the number of workers they can hire and the number of meals they can produce given the amount of labor they hire.
labor Meals Produced Fixed Costs Variable Cost Total Cost Average Variable Cost
0 0 blank 0 blank -
1 100 blank blank blank blank
2 150 blank blank blank blank
3 175 blank blank blank blank
Average Total Cost Marginal Cost
- -
blank blank
blank blank
blank blank
From the table above can you state how many workers Phil's Food Truck should hire if they aim to maximize profits?If so, how many workers?If not, why not?
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