Suppose the Local Newspaper Hires Students to Fold and Bag

question 187

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 cost of the capital the firm uses 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:

Humanistic Approach

An approach to psychology emphasizing a person’s positive qualities, the capacity for positive growth, and the freedom to choose any destiny.

Personality

The blend of traits and attributes that create a person's unique personality.

Conscious Awareness

the mental state of being fully present and aware of one's thoughts, feelings, and surroundings.

Subjective Well-being

An individual's self-perceived happiness or satisfaction with life, often assessed through measures of emotional and cognitive evaluations of their existence.