BurgerHub is one of the biggest burger chains inthe town. They hire labour at the rate of tk. 4587per worker and their fixed cost is equal to tk.11288 per week. The table below is the productschedule of BurgerHubLabour (workershired per week)Output (burgersproduced per week)13527512541651952157225(a) What is the total cost, when output is 125?Give your answer in 2-decimal places. (b) What is the marginal cost per unit when theymove from output 195 to output 215?Give your answer in 2-decimal places.(c) Consider that BurgerHub isoperating in its range ofeconomies of scale. At that levelof output, the slope of its LRACcurve isPositiveZeroNegativeInsufficient information to comment onthe slope of the LRAC curve

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Answered: and their fix veek. The t BurgerHub…

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Economics

and their fix veek. The t BurgerHub rkers eek)

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 9SQP

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Question

BurgerHub is one of the biggest burger chains in
the town. They hire labour at the rate of tk. 4587
per worker and their fixed cost is equal to tk.
11288 per week. The table below is the product
schedule of BurgerHub
Labour (workers
hired per week)
Output (burgers
produced per week)
1
35
2
75
125
4
165
195
215
7
225
(a) What is the total cost, when output is 125?
Give your answer in 2-decimal places.

(b) What is the marginal cost per unit when they
move from output 195 to output 215?
Give your answer in 2-decimal places.
(c) Consider that BurgerHub is
operating in its range of
economies of scale. At that level
of output, the slope of its LRAC
curve is
Positive
Zero
Negative
Insufficient information to comment on
the slope of the LRAC curve

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