Question

Deleto le 11-6 uantity of Quantity of foot Fixed massages per day cost workers Variable Total cost cost 0 Average total cost Marginal cost 28) Refer to Table 11-6. Alicia Gregory owns a foot massage business. She leases 4 computer-controlled massage booths, for which she pays $125 per day. She cannot increase the number machines she leases without giving the manufacturer 3 months notice. She can hire as many workers as she wants at a cost of $75 per day per worker. These are the only two inputs she uses in her business. Use this information to fill in the columns in the above table.

Answer 1

Fixed variable ¢ Cost = 125 cost-= VC= = FC wage XL - 75L Workers (TC) | Totd Fetul To 17 IFC INC cost = 2125 125 10 1125 5 200 25 1125 1 150 275 US 1125 1 1350 1125 300 125 375 soo 200-20 275 l 350/45=7.78 925/60= 7.08 150o=7.14 1425 L Margund cost (Mc) = OVQ 15 2 (150-75 - 3.75