Question: 1. It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators.
2. What is the company's average cost?
3. What is the company's marginal cost?
4. A customer is willing to pay $60 for the 701th calculator. Should the company produce and sell it? Explain.
5. Kalea quits her job, which pays $40,000 a year, to enroll in a two-year graduate program. Her annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is her opportunity cost of attending the two-year graduate program? Explain.
6. Bricklaying is a labour-intensive activity. One Hod carrier can provide mortar for two bricklayers (A Hod carrier is a labourer who carries material for the bricklayer). The company is considering increasing the number of bricklayers to increase production. Does diminishing returns hold in this scenario? Explain.