Question

The questions blacked out i do not need answered, the last word on question 8f is "classrooms"

Assignment 6 Worksheet Assignment 6 Worksheet 7. The table below shows how the number of university classrooms cleaned in an evening varies with the number of janitors: Janitors per evening DIBA0 Classrooms cleaned prevo d Marginal Product slapen Margint Variabidest Average Variable You can fill in the Marginal Products from the information given. a. What is the marginal product of the second janitor? b. What is the average product of four janitors? d. Is the addition of the fourth janitor associated with increasing, diminishing, or negative marginal returns? To convert this information on the productivity per work to costs per unit, a. If each janitor costs $100/day, what is the marginal cost per classroom cleaned? (note: this doesn't work for 6 or 7 janitors, because in this textbook example, it isn't possible to clean more than 17 classrooms per evening) b. What is the variable cost (in total) associated with the number of janitors hired? c. What is the average variable cost per classroom cleaned? Helpful Formulas: Average X = XIQ Example: AVC = VC/Q.

Answer 1

We have the following information

Janitors per evening	Classrooms cleaned per evening	Marginal Product (MP)	Marginal Cost (MC)	Variable Cost (VC)	Average Variable Cost (AVC)
0	0	--	--	0	--
1	3	3	100	100	33.3
2	7	4	100	200	28.6
3	12	5	100	300	25.0
4	16	4	100	400	25.0
5	17	1	100	500	29.4
6	17	0	100	600	35.3
7	16	-1	100	700	43.8

1. Marginal product (MP) is the change in total product with the addition of one more unit of the input. The MP of the second janitor is 4.

2. Average product is total product divided by total quantity of input. So, average product of four janitors is 16 ÷ 4 = 4.

3. Addition of the fourth janitor is associated with diminishing marginal returns, as the MP has declined from 5 to 4 with the addition of the fourth janitor.

Q	TC ($)	ATC ($)	FC ($)	AFC ($)	VC ($)	AVC ($)	MC ($)
0	100	--	100	--	0	--	--
3	200	66.7	100	33.3	100	33.3	100
7	300	42.9	100	14.3	200	28.6	100
12	400	33.3	100	8.3	300	25.0	100
16	500	31.3	100	6.3	400	25.0	100
17	600	35.3	100	5.9	500	29.4	100

Average total cost (ATC) is Total Cost (TC) divided by Classrooms Cleaned per Evening (Q).

Fixed cost (FC) is the cost when Q is zero.

Average fixed cost (AFC) is FC divided by Q.

Variable cost (VC) is TC minus the FC.

Average variable cost (AVC) is VC divided by Q.

Marginal cost (MC) is change in TC when Q changes by one unit.

4. AFC of cleaning 7 classrooms is $14.3.

5. AVC of cleaning 7 classrooms is $28.6.

6. MC of cleaning the seventeenth classroom is $100.

7. ATC of cleaning 12 classrooms is $33.3