Helen makes cheesecakes using equipment that she rents for 300 Helen makes cheesecakes using…

Helen makes cheesecakes using equipment that she rents for 300

Don't use plagiarized sources. Get Your Custom Essay on
Helen makes cheesecakes using equipment that she rents for 300 Helen makes cheesecakes using…
For as low as $13/Page
Order Essay

Helen makes cheesecakes using equipment that she rents for $300 and cheese and butter that cost $4.55 a cake. She hires workers and finds that they produce according to the following schedule: Workers are paid $10/hour.
A. Calculate and graph the marginal cost of each cheesecake. Why does the MC curve have the slope (up, down, or flat) that it does?
B. Calculate and make a new graph giving the marginal cost of each cheesecake if workers become 25% more productive, that is to say, if each cake can be made with only 75% as much labor.
C. Calculate and make a new graph of the marginal cost if workers get a raise to $15/hour, with the old productivity.
Cheesecake Labor
1 …………. 0.1
2 …………. 0.25
3 …………. 0.475
4 …………. 0.8125
5 …………. 1.31875
6 …………. 2.078125
7 …………. 3.217188
8 …………. 4.925781

Helen makes cheesecakes using equipment that she rents for 300