Problem_set6_-_solutions

# Problem_set6_-_solutions - EC201 Introduction to...

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Spring 2008 1 Name:_______________________ Student Number:_______________ Problem set # 6 (Due on Tuesday 02/26/2008, by 12:40pm) Please staple all the pages together. Circle the most appropriate answer to the following questions (each question is worth 1 point): 1) Refer to the Table above. Each worker at Gallo's cork factory costs \$12 per hour. The cost of each machine is \$20 per day regardless of the number of corks produced. What is the total daily cost of producing at a rate of 55 corks per hour if Gallo’s operates 8 hours per day? a. \$480 b. \$576 c. \$520 d. \$616 ANS: C 2) Refer to the Table above. Each worker at Gallo's cork factory costs \$12 per hour. The cost of each machine is \$20 per day regardless of the number of corks produced. Assume the number of machines does not change. If Gallo's produces at a rate of 78 corks per hour, what is the total machine cost per day? a. \$20

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## This note was uploaded on 03/30/2008 for the course ECON 201 taught by Professor C.liedholm during the Spring '07 term at Michigan State University.

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Problem_set6_-_solutions - EC201 Introduction to...

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