Ask Question, Ask an Expert


Ask Microeconomics Expert

Jack owns an auto repair shop, specializing in European cars. With three full-time mechanics, Jack's shop repairs/services 15 cars per week. Each worker is paid $500 per week. By hiring another mechanic, at the same salary, he can increase his weekly output to 20 cars. A fifth mechanic would increase his output to 22, and a sixth one to 23. After hiring the seventh mechanic Jack would see his output drop to 22.

a. find out Jack's total variable cost (TVC), marginal cost (MC), and average variable cost (AVC) at these four levels of output.

b. If the average price that Jack charges for each car he services is $500, how many cars per week should he take in? (describe)

c. Suppose Jack's weekly fixed costs is $1500. Assuming he is a profit maximizer, determine his weekly profit.

d. Does Jack's production function exhibit, constant, increasing, or diminishing returns (to labor)?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M938996

Have any Question? 

Related Questions in Microeconomics

Discussion forumtopicsanother reason to hate the yankeesand

DISCUSSION FORUM Topics: Another reason to hate the Yankees...and the Red Sox, the Dodgers, the Cardinals, even the Pirates Yankee Stadium and the Power of Sports Monopolies ...

Assignment key concepts of economicswrite a three to four

Assignment: Key Concepts of Economics Write a three to four page paper in which you: 1. Identify at least four key points of a relevant economic article from either the Strayer Library or a newspaper. The article must de ...

Assignmentplease make sure all graphs are clearly labeled

Assignment Please make sure all graphs are clearly labeled. Each of these questions should be answered with complete sentences. Due at the start of class Sept 27th; no late homework is accepted. All questions are taken f ...

Milestone guidelinesthe purpose of this milestone is for

Milestone Guidelines The purpose of this milestone is for students to explore the various costs their firm faces and to describe their firm's market. Using the concepts and tools developed in Modules Four and Five, stude ...

Cost-benefit analysisi measuring benefits from projects

Cost-Benefit Analysis I. Measuring Benefits From Projects That Reduce Private Good Costs Of Production (No distortions.)The inverse demand function for a good is given by: P = 30 -Q/3. Assume that the initial supply curv ...

Problem 1 given the following total revenue tr and total

Problem 1: Given the following total revenue (TR) and total cost (TC) functions, find the quantity of output (Q) that would maximize profit (π). Note that profit function is: π = TR - TC. TR = 1400Q - 7.5Q2 TC = Q3 - 6Q2 ...

Short-run economic fluctuationscreate a 3 -slide microsoft

Short-Run Economic Fluctuations Create a 3 -slide Microsoft PowerPoint presentation that will be presented to the organization's Executive Committee. The presentation should cover the following items: • Identify the thre ...

Recall from lecture the two facts we discussed one no

Recall from lecture the two facts" we discussed: One, no product exists at a vacuum; and two relationships among products change over time. Recall the background factors of demand: consumer preferences/ Wants; consumer i ...

Human relations amp workforce planningpharmanetixfor your

Human Relations & Workforce Planning PHARMANETIX For your final project, you need to write a 10-15 page proposal to me, the Chairman of the Board for Pharmanetix. Here are some helpful hints when writing this proposal: 1 ...

Organization theorythis is the take-home midterm

ORGANIZATION THEORY This is the take-home Midterm Examination. You can use all available information, but are not allowed any exchange of Information between students taking this course. The deadline of HARD COPY submiss ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate