This worksheet is intended to help you develop the information you will use to complete your Unit V Essay. You are expected to include the completed table in your Unit V Essay. The additional questions after the tables are intended to help you formulate your ideas concerning what you will write in your essay.
Just completing this worksheetÂ does notÂ constitute completing the Unit V Assignment. The information from the worksheet must be incorporated into your essay submission. Follow the instructions below.
1. Complete all parts of the Unit V Assignment Worksheet.
2. Answer the questions after the table; these will help you formulate your ideas for writing the essay part of your Unit V Assignment. You are expected to expand on these questions in your writing.
3. Include the tables and your question responses from the Unit V Assignment Worksheet as an appendix following the essay part of your Unit V Assignment.
On the next page, you are provided with a table showing the different levels of output for concession stand items that are possible as the number of workers used changes. Also included are the price of labor, the total fixed cost per day, and the average price of concession stand items. Using the information you learned from the textbook for this class as well as the information in the Unit V Lesson:
1. Complete the table below concerning concession stand topics.
2. Answer all of the questions listed below the table. As mentioned, doing this will help you when formulating your thoughts for the essay part of your Unit V assignment.
|Round These Answers to the Nearest Whole Number||Round These Answers to the Nearest Penny|
|Output (Concession Stand Items)||Number of Workers Employed Per Day||Price of Labor Per Worker Per Day||Total Variable Cost of Labor||Total Fixed Costs Per Day||Total Cost Per Day||Average Price of Concession Stand Items||Total Revenue||Profit||Average Variable Cost||Average Fixed Cost||Average Total Cost||Marginal Cost||Marginal Revenue|
Questions: Use your responses to these questions to help you formulate ideas for writing your Unit V Essay.
Question 1:Â What is the level of profit that is made by Ruby Red Movie Theater if 2 workers are employed at the concession stand and only 100 items of output are produced (sold) at the concession stand?
Question 1a:Â Should Ruby Red Movie Theater continue to operate the concession stand if only 100 concession stand items are being produced (sold) by 2 workers? Why, or why not?
Question 2:Â If Ruby Red Movie Theater wanted to produce (sell) 1,290 items from the concession stand, would profit be maximized? Why, or why not?
Question 3:Â At what level of output and labor input are concession stand profits maximized for Ruby Red Movie Theater? What are two ways you could tell if this was correct from the table data?
Question 4:Â How are average total cost and marginal cost related to marginal product and average product?
Question 5:Â What do you notice about marginal revenue and the price of output (average price of concession stand items in this case)?
Question 6:Â What is the maximum level of profit that can be generated from concession stand items?
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