Cork Factory # workers # of machines Output (corks per day) a.) 1 2 50 b.) 2 2 1
ID: 1091140 • Letter: C
Question
Cork Factory
# workers # of machines Output (corks per day)
a.) 1 2 50
b.) 2 2 100
c.) 3 2 200
d.) 4 2 350
e.) 5 2 550
f.) 6 2 700
g.) 7 2 800
Cost per worker: $12 per hour (assume a 12-hour day)
Cost per machine: $20 per day
Find the following:
1.) Marginal Product of Labor for a thru g above
2.) Total Cost for a thru g above
3.) Marginal Cost for a thru g above
4.) Average Total Cost for a thru g above.
5.) Describe briefly the relationship among the marginal product of labor, the marginal cost, and the average total cost, focusing on the
Explanation / Answer
149.7143
. Marginal Product of Labor for a thru g above
# of workers
Output (corks per day)
Marginal Product
1
50
50
2
100
50
3
200
100
4
350
150
5
550
200
6
700
150
7
800
100
2. Total Cost for a thru g above
# of workers
Output (corks per day)
Total Cost
1
50
184
2
100
328
3
200
472
4
350
616
5
550
760
6
700
904
7
800
1048
3. Marginal Cost for a thru g above
# of workers
Output (corks per day)
Marginal Cost
1
50
184
2
100
144
3
200
144
4
350
144
5
550
144
6
700
144
7
800
144
4. Average Total Cost for a thru g above.
# of workers
Output (corks per day)
Average Cost
1
50
184
2
100
164
3
200
157.3333333
4
350
154
5
550
152
6
700
150.6666667
7
800
149.7142857
a no of worker no of machine output Marginal product Total cost Marginal cost Avg cost b 1 2 50 50 184 184 184 c 2 2 100 50 328 144 164 d 3 2 200 100 472 144 157.3333 e 4 2 350 150 616 144 154 f 5 2 550 200 760 144 152 g 6 2 700 150 904 144 150.6667 7 2 800 100 1048 144149.7143
. Marginal Product of Labor for a thru g above
# of workers
Output (corks per day)
Marginal Product
1
50
50
2
100
50
3
200
100
4
350
150
5
550
200
6
700
150
7
800
100
2. Total Cost for a thru g above
# of workers
Output (corks per day)
Total Cost
1
50
184
2
100
328
3
200
472
4
350
616
5
550
760
6
700
904
7
800
1048
3. Marginal Cost for a thru g above
# of workers
Output (corks per day)
Marginal Cost
1
50
184
2
100
144
3
200
144
4
350
144
5
550
144
6
700
144
7
800
144
4. Average Total Cost for a thru g above.
# of workers
Output (corks per day)
Average Cost
1
50
184
2
100
164
3
200
157.3333333
4
350
154
5
550
152
6
700
150.6666667
7
800
149.7142857
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