数学问题答案.pdfVIP

Question 1 Clean and Shine is a competitor to Spotless Car Wash. Like Spotless, it must pay $150 per day for each automated line it uses. But Clean and Shine has been able to tap into a lower-cost pool of labour, paying its workers only $100 per day. Clean and Shine’s production technology is given in the following table. To determine its short-run cost structure, fill in the blanks in the table. Short-Run Costs for Clean and Shine Car Wash 1 2 3 4 5 6 7 8 9 10 Output Capital Labour TFC TVC TC ($) MC ($) AFC AVC ATC (per (automated ($) ($) ($) ($) ($) day) line) 0 1 0 150 0 150 - - - - 30 1 1 150 100 250 3.33 5 3.33 8.33 70 1 2 150 200 350 2.50 2.14 2.86 5 120 2.00 1.25 2.50 3.75 550 2.50 0.94 2.50 3.44 650 3.33 0.79 2.63 3.42 210 5.00 0.71 2.87 3.58 (a) Over what range of output does Clean and Shine experience reasing marginal returns to labour? Over what range does it experience diminishing marginal returns to labour? Ans: Between output 1 – 120 car washes. From 121st th