Suppose the Local Newspaper Hires Students to Fold and Bag

question 142

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 cost,total variable cost,and total costs of folding and bagging 300 newspapers.
d.Calculate the average fixed cost,average variable cost,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:

Common Components

Common Components refer to parts or materials used in the manufacturing of multiple product models or lines, helping to streamline production and reduce costs.

Component Commonality

The use of the same parts or materials in multiple products or systems to reduce inventory and increase efficiency.

Aggregation

the process of combining multiple elements, data, or inputs into a summarized or unified whole, often used in the context of data analysis or planning.

Periodic Review Policies

Inventory management techniques that involve reviewing and adjusting inventory levels at fixed intervals to ensure adequate supply.