2 3. 4. Table 13-2 Adrian\'s Premium Boxing Service subcontracts with a chocolat

Question

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Table 13-2 Adrian's Premium Boxing Service subcontracts with a chocolate manufacturer to box premium chocolates for their mail-order catalogue business. She rents a small room for $150 a week in the downtown business district that serves as her factory. She can hire workers for $275 a week. Number of ChocolatesMarginal Cost of Total Cost of Cost of Factory Workers Produced per Product of Labour Workers Inputs Week 330 $150 S275 5425 630 150 S825 5975 4 890 950 60 $1375 10 $1800 Refer to Table 13-2. Adrian has received an order for 3000 boxes of chocolates for next week. Suppose she expects that the trend in the marginal product of labour will continue in the same direction. What is most likely her best decision? O A. close her business until she is able to hire more productive workers O B. commit to meeting the order and then take three weeks to complete the job ? ?.hire about 12 new workers and hope she can satisfy the order O D. not commit to meeting the order until she can move to a larger room and hire more workers to box the chocolates

Explanation / Answer

Ans 1)

Option B is correct response

Ans 3)

If Prices are below $5 then firm will shut down hence option B s correct response

Ans 4)

Opportunity cost is $200

HEnce option B is correct

Number of woekers Chocolates Produces MPL Cost of Factory Cpst of Workers Tptal Cost 0 0 150 0 150 1 330 330 150 275 425 2 630 300 150 550 700 3 780 150 150 825 975 4 890 110 150 1100 1250 5 990 60 150 1375 1525 6 1000 10 150 1650 1800

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