-Suppose the Local Newspaper Hires Students to Fold and Bag

question 291

Essay

-Suppose the local newspaper hires students to fold and bag newspapers for delivery and pays them $20 per shift. Five students can fold and bag 300 newspapers per shift. The fourth student added 50 newspapers to total output. The capital cost is fixed at $50 per shift.
a) Is the newspaper operating in the long run or short run? Why?
b) What is the average product of 5 students?
c) Calculate the total fixed, total variable, and total costs of folding and bagging 300 newspapers.
d) Calculate the average fixed, average variable, and average total costs of folding and bagging 300 newspapers.
e) What is the marginal cost of one of the 50 newspapers folded and bagged by the fourth student?

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Definitions:

Glial Cells

Non-neuronal cells in the nervous system that provide support and protection for neurons.

Synapses

The junctions between neurons through which signals are transmitted; these can be chemical or electrical in nature.

Blood Vessels

Tubular structures carrying blood through the tissues and organs; a vital component of the circulatory system.

Pincer Grasp

The coordination of the index finger and thumb to hold an object, an important milestone in the fine motor development of infants.