-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:

Quantitative Data

Data that can be quantified and is typically structured in nature, usually represented in numbers and statistics for analysis.

Qualitative Data

Non-numerical information that describes qualities or characteristics, often gathered through interviews, observations, or surveys.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including about consumers and competitors.

Primary Data

Original data collected firsthand for a specific research purpose or project.