Order the answer to: Paducah Slugger Company makes baseball bats out of lumber supplied

Paper help business-economics Order the answer to: Paducah Slugger Company makes baseball bats out of lumber supplied

business-economics

Order the answer to: Paducah Slugger Company makes baseball bats out of lumber supplied

Question Paducah Slugger Company makes baseball bats out of lumber supplied to it by Acme Sporting
Goods, which pays Paducah $10 for each finished bat. Paducah’s only factors of production are lathe operators and a small building with a lathe. The number of bats it produces per day depends on the number of employee-hours per day, as shown in the table below
Number of bats per day Number of employee-hours per day
0…………………………….. 0
5…………………………….. 1
10…………………………….. 2
15…………………………….. 4
20…………………………….. 7
25…………………………….. II
30…………………………….. 16
35…………………………….. 22
a. If the wage is $15 per hour and Paducah’s daily fixed cost for the lathe and building is $60, what is the profit-maximizing quantity of bats?
b. What would be the profit-maximizing number of bats if the firm’s fixed cost were not $60 per day but only $30?
Subject business-economics
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