Draw the average total cost curve and marginal cost curve

Reference no: EM131020945

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.

Quantity of Workers	Quantity of Copies per day	Fixed Cost	Variable cost	Total Cost	Average Total cost	Marginal Cost
0	0.00
1	600
2	1100
3	1500
4	1800
5	2000
6	2100

a. Fill in the remaining columns in the following table.

b. Draw the average total cost curve and marginal cost curve for Santiago's store. Do these curves have the expected shape? Briefly explain.

Reference no: EM131020945

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