Question

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.

Answer 1

Santiago delgado  Copier Store Fixed cost , Variable Cost & Total Cost Shown

Step-by-step explanation:

Complete Question is in attachment

Fixed Cost = 2 * 20$ = 40$

Variable Cost = number of Workers * 40 $

Total Cost = Fixed Cost + Variable Cost

Workers  Copies per day       Fixed  Cost      Variable Cost     Total Cost  

0               0                           40 $                      0 $                        40$

1                600                       40 $                      40 $                      80$

2               1100                      40 $                      80 $                      120$

3               1500                     40 $                     120 $                      160$

4               1800                     40 $                     160 $                      200$

5              2000                     40 $                     200 $                      240$

6              2100                      40 $                     240 $                      280$

Average Total Cost = Total Cost /number of copies

Marginal cost is the change in total cost divided by the change in output.