Quiz_107 - ESSAY. Table11-4 Numberof Workers Output(boxes 0 1 2 3 4 5 6 0 220 Marginal OfficeRent LaborCost Productof(dollars(dollars Labor-400 200 250

# Quiz_107 - ESSAY. Table11-4 Numberof Workers Output(boxes 0...

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ESSAY. Write your answer in the space provided or on a separate sheet of paper. Table 11 - 4 Number of Workers Output (boxes) Marginal Product of Labor Office Rent (dollars) Labor Cost (dollars) Total Cost (dollars) 0 0 -- 1 220 400 200 2 250 800 3 680 4 160 1,200 5 940 1,000 6 980 1,600 25
83)Refer to Table 11-4.Suzetteʹs Fancy Packaging subcontracts with Sunshineland Pecans to box dried fruit andnuts for Suzetteʹs mail order business. Suzette rents space for her factory for \$400 a week in a nearby strip mall.She can hire temporary workers for \$200 a week. Table 11-4 above shows her output and cost data. Use thetable to answer questions a-e.a.Complete the table.b.In the last week of summer Suzette closes her business to go on a family vacation. What are her costsduring that week?c.In one week Suzette exactly breaks even. If her revenue for the week is \$1,200, how many boxes of fruit andnuts did she produce?d.Judging from the marginal product of labor data, would you say that Suzette had to settle for increasinglyunproductive workers? Explain your answer.e.Suzette has received an order for 1,500 boxes of nuts per week for the next 3 months. If she expects thetrend in the marginal product of labor will continue in the same direction, what do you think she should do?Should she not commit until she can move to a larger space or should she just hire more workers? Explain youranswer.

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• Fall '13
• AACSB, Page Ref, 86, 88