Order DescriptionThe following table gives the total weekly output of bicycles at Als Bicycle Town.Table 1Labor Total Product (TP) Average Product of labor (AP) Marginal Product of labor (MP)0 0 na na1 100 100 1002 300 ___3 450 ___ ___4 ___ ___ 1105 630 ___ ___6 ___ 110 ___Complete this table.
Draw the graphs of the marginal product (MP) and the average product (AP).
To learn how to plot the data in Excel, see https://www.youtube.com/watch?v=B3U9tDcoNeI
Where do the AP and MP curve cross?The cost of 1 worker is $2000 per month. Total fixed cost is $4000 per month.
Complete Table 2 using your answers from Table 1 and by computing total variable cost (TVC) and total cost(TC).Table 2Labor Total Product (TP) Total variable cost (TVC) Total cost (TC)0 0 na 40001 100 2000 ___2 300 ___3 450 ___ ___4 ___ ___ 120005 630 ___ ___6 ___ 12000 ___Draw the graphs of the TC and TVC curves. What is the relationship between these two curves?
Complete Table 3 by using your answers from the previous Tables and calculating the AVC, ATC, and MC.Table 3Total Product (TP) Average variable cost (AVC) Average total cost (ATC) Marginal cost (MC)0 na na na100 20 ___ 20300 ___ ___450 ___ ___ ______ ___ 21.43 ___630 ___ ___ ______ ___ ___ 66.67Draw the graphs of the ATC, AVC, and MC curves. What is the relationship between the ATC and AVC curves? Between the MC and AVC curves?Suppose that Al discovers new technology that boosts the productivity of his workers, so that more bicycles can be produced than before.
Complete Table 4, which presents production data with the new technology.Table 4Labor Total Product (TP) Average Product of labor (AP) Marginal Product of labor (MP)0 0 na na1 120 120 1202 360 ___3 540 ___ ___4 672 ___ ___5 756 ___ ___6 792 ___ ___Als fixed cost remains at $4000, and he can continue to hire workers at the monthly rate of $2000.
Use the new technology data to complete Tables 5 and 6.Table 5Labor Total Product (TP) Total variable cost (TVC) Total cost (TC)0 0 na ___1 120 ___ ___2 360 ___3 540 ___ ___4 672 ___ ___5 756 ___ ___6 792 ___ ___Draw the ATC and MC curves you just entered in Table 5. How do the old and new ATC curves compare? The old and the new MC curves?Table 6Total Product (TP) Average variable cost (AVC) Average total cost (ATC) Marginal cost (MC)0 na na na120 ___ ___ ___360 ___ ___540 ___ ___ ___672 ___ ___ ___756 ___ ___ ___792 ___ ___ ___Return to the old technology data. Suppose that the cost of Als fixed inputs remains the same at $4000, but the cost of labor rises. Specifically, suppose that a worker now receives $3000 per month.
Complete Table 7. For the two missing TP copy your answers from Table 1Table 7Labor Total Product (TP) Total variable cost (TVC) Total cost (TC)0 0 na 40001 100 3000 ___2 300 ___3 450 ___ ___4 ___ ___ 160005 630 ___ ___6 ___ 18000 ___In Table 8 compare the cost before and after the increaseTable 8Before the increase After the increaseTP ATC MC ATC MC0 ___ ___ ___ ___100 ___ ___ ___ ___300 ___ ___ ___ ___450 ___ ___ ___ ______ ___ ___ ___ ___630 ___ ___ ___ ______ ___ ___ ___ ___Last question: how did the rise in variable costs affect the average total cost? The marginal cost?Assignment ExpectationsIn the Module Case Assignment, you are expected to:
Describe the purpose of the paper and provide a conclusion.
Present information in a professional manner.
Answer the Case Assignment questions clearly and provide necessary details.
Write clearly and correctlythat is, no poor sentence structure, no spelling and grammar mistakes, and no run-on sentences.
Provide citations to support your argument and place references on a separate page. (All the sources that you listed in the references section must be cited in the paper.) Use APA format to provide citations and references [http://owl.english.purdue.edu/owl/resource/560/01/].
Type and double-space the paper.
Whenever appropriate, please use Excel to show supporting computations in an appendix, present economic information in tables, and use the data to answer follow-up questions.
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