Answered: product schedule for plastic bags. Each…

product schedule for plastic bags. Each unit of labor costs $25 and the total cost of capital is $100. The selling price of the plastic bags in the market is $8.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.7P

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Question

The table below shows the total
product schedule for plastic bags.
Each unit of labor costs $25 and the
total cost of capital is $100. The
selling price of the plastic bags in
the market is $8.
LabourTotal product
(plastic bags per day)
1
2
15
3
35
4
50
15
60
16
65
What is the total costs (TC) of
producing 65 plastic bags a day?

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