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A Korean BBQ restaurant has four workers for washing jobs: Dane, June, Park, and Pola. Each workers eight hours a day and can produce two washing services: Washing rice bowls and washing grill racks. In an hour, Dane can either wash 60 rice bowls or wash 60 grill rack; June can either wash 80 rice bowls or wash 60 grill racks; Park can either wash 70 rice bowls or wash 60 grill racks; and Pola can either was 60 rice bowls or wash 80 grill racks.
Graph the production possibilities frontier over one day for this restaurant. In the graph, you must identify the points where transfer of a worker from one job to another starts to take place, by showing the coordinates of the points. In answering this question, you must take into account the fact that every worker works eight hours a da y.
Suppose the short-run production function is q = 6L^2. If the wage is $12 per unit of labor, then: What is the average variable cost?
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