Table 3 umber of Workers atput Variable Total 50 170 30 70 So 110 16. Refer to T
ID: 1114534 • Letter: T
Question
Table 3 umber of Workers atput Variable Total 50 170 30 70 So 110 16. Refer to Table 3. The marginal product of the second worker is a. 90 units. b. 85 units. . 80 units. d. 20 units 17. Refer to Table 3. How much is the Average Total Cost of product when 4 workers are hired? a. $25.3 b. $27.5 c. $32.5 d. $36.6 18. Trevor's Tire Company produced and sold 600 tires. The average cost of production per tire was $55. Each tire sold for a price of $70. Trevor's Tire Company's total profits are a. $9,000 c. $15,000 b. $10,000 d. $33,000 Figure 1 Cost MC ATC AVC A B C QuantitExplanation / Answer
Question 16
Total output with 1 worker = 90 units
Total output with 2 workers = 170 units
Calculate the marginal product of the second worker -
MP of second worker = Total output with 2 workers - Total output with 1 worker
MP of second worker = 170 units - 90 units = 80 units
The correct answer is the option (c).
Question 17
Total cost when 4 workers are hired = $130
Calculate the average total cost of production when 4 workers are hired -
ATC = TC/number of workers hired = $130/4 = $32.5
The ATC is $32.5
The correct answer is the option (c).
Question 18
Calculate the total profit -
Total profit = (Price * Quantity sold) - (Average cost * Quantity sold)
Total Profit = ($70 * 600) - ($55 * 600) = $42,000 - $33,000 = $9,000
The total profit is $9,000.
The correct answer is the option (a).
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