Santiago Delgado owns a copier store. He leases two copy machines for which he pays $20 each per day. He cannot increase the number of machines he leases without giving the office machine company six weeks’ notice. He can hire as many workers as he wants, at a cost of $40 per day per worker. These are the only two inputs he uses to produce copies. Enter your responses for FC, VC, and TC as integers and round your responses for ATC and MC to two decimal places. Quantity of Workers Quantity of Copies per day FC VC TC ATC(S) MC($)
0 0 40 0 40 - -
1 600 40 40 80 .13 .06
2 1100 40 80 120 .11 .08
3 1500 40 120 160 .10 .10
4 1800 40 160 200 .11 .13
5 2000 40 200 240 .12 .20
6 2100 40 240 280 .13 .40
The average total cost curve and the marginal cost curve are U shapedThe average total cost curve and the marginal cost curve are related in that the MC curve passes through the minimum point of the ATC curve.