The production function for Marty’s Frozen Yogurt is shown in the accompanying table.
Marty pays each of his workers $80 per day. The cost of his other variable inputs is $0.50 per cup of yogurt. His fixed cost is $100 per day.
a. Calculate variable and total costs for the following levels of output: 110 cups, 200 cups, 300 cups, and 320 cups.
quantity of labor(workers) quantity of frozen yogurt(cups)
0 0
1 110
2 200
3 270
4 300
5 320
6 330
variable cost, Q = 110:$____
variable cost, Q = 200:$____
variable cost, Q = 270:$____
variable cost, Q = 300:$____
variable, Q = 320:$________
b. In the accompanying diagram, plot the variable and total cost points that you calculated in part a. c. What's the marginal cost of production going from 110 cups to 200 cups? What about for 300 cups to 320 cups? Round your answers to the nearest cent. MC, Q = 110 to Q = 200: $________ MCQ = 300 to Q = 320: $________
