This worksheet is intended to help you develop the information you will use to complete your Unit IV Essay. You are expected to include the completed tables in your Unit IV Essay. The additional questions after the tables are intended to help you formulate your ideas concerning what you will write in your essay.
NOTE: Just completing this worksheetdoes not constitute completing the Unit IV Assignment. The information from the worksheet must be incorporated into your essay submission. Follow the instructions below.
Instructions:
- Complete all parts of this Unit IV Assignment Worksheet.
- Answer the questions listed after the tables; these willhelp you formulate your ideas for writing the essay part of this unit’s assignment. You are expected to expand on these questions in your writing.
- Include the tables and your question responses from thisworksheetas an appendix at the end ofyour essay.
On the following pages, you will be provided with tables showing the different levels of output that are possible as the number of workers used per day changes. Using the information you learned from this unit’s textbook readings for this class as well as the information in the Unit IV Lesson, include the following:
- Complete the two tables below; one is for production of concession stand item saleswhile the other is for production of movie ticketsales.
- Answer all of the questions listed beloweach table; as mentioned, these answers will help you when formulating your thoughts for the essay part of yourUnit IV Assignment.
| Number of Workers per Day | Concession Items Produced per Day | Average Product | Marginal Product | Average Price of Concession Items | Total Value Product | Average Value Product | Marginal Value Product | Price of Worker per Day | |||||||
| 0 | 0 | $8.00 | $120.00 | ||||||||||||
| 2 | 100 | $8.00 | $120.00 | ||||||||||||
| 4 | 400 | $8.00 | $120.00 | ||||||||||||
| 6 | 750 | $8.00 | $120.00 | ||||||||||||
| 8 | 900 | $8.00 | $120.00 | ||||||||||||
| 10 | 1,025 | $8.00 | $120.00 | ||||||||||||
| 12 | 1,125 | $8.00 | $120.00 | ||||||||||||
| 14 | 1,200 | $8.00 | $120.00 | ||||||||||||
| 16 | 1,250 | $8.00 | $120.00 | ||||||||||||
| 18 | 1,280 | $8.00 | $120.00 | ||||||||||||
| 20 | 1,290 | $8.00 | $120.00 | ||||||||||||
| 22 | 1,290 | $8.00 | $120.00 | ||||||||||||
| 24 | 1,280 | $8.00 | $120.00 | ||||||||||||
Questions: Use these questions to help you formulate your ideas for writing the Unit IV Essay.
Using the information from the table you completed, answer the following questions:
- At what number of workers used per day does the law of diminishing marginal returns begin? How did you determine this number?
- At what number of workers used per day does negative marginal returns begin? How did you determine this number?
- What similarities do you see between the shape of the Average Product curve and the Average Value Product Curve?
- What similarities do you see between the Marginal Product curve and the Marginal Value Product curve?
| Number of Workers per Day | Movie Tickets Produced per Day | Average Product | Marginal Product | Average Price of Movie Tickets | Total Value Product | Average Value Product | Marginal Value Product | Price of Worker per Day | |||||||
| 0 | 0 | $10.00 | $120.00 | ||||||||||||
| 1 | 227 | $10.00 | $120.00 | ||||||||||||
| 2 | 615 | $10.00 | $120.00 | ||||||||||||
| 3 | 935 | $10.00 | $120.00 | ||||||||||||
| 4 | 1,185 | $10.00 | $120.00 | ||||||||||||
| 5 | 1,427 | $10.00 | $120.00 | ||||||||||||
| 6 | 1,631 | $10.00 | $120.00 | ||||||||||||
| 7 | 1,788 | $10.00 | $120.00 | ||||||||||||
| 8 | 1,800 | $10.00 | $120.00 | ||||||||||||
| 9 | 1,800 | $10.00 | $120.00 | ||||||||||||
| 10 | 1,789 | $10.00 | $120.00 | ||||||||||||
| 11 | 1,757 | $10.00 | $120.00 | ||||||||||||
| 12 | 1,679 | $10.00 | $120.00 | ||||||||||||
Questions: Use these questions to help you formulate your ideas for writing the Unit IV Essay.
Using the information from the table you completed, answer the following questions:
- At what number of workers used per day does the law of diminishing marginal returns begin? How did you determine this number?
- At what number of workers used per day do negative marginal returns begin? How did you determine this number?
- What is the optimal number of workers per day to produce movie ticket sales? How did you determine this optimal level?
- Unit IV Assignment
- Weight: 10% of course grade
Instructions
Ruby Red Movie Theater has experimented with using different numbers of workers in the concession area of the theater as well as at the ticket counter. In these experiments, Tracy, the manager of the theater, collected data on total number of buckets of popcorn as well as movie ticket sales produced per day.
Tracy would like for you to analyze the data and tell her how many workers she should use each day in the concession stand area for producing popcorn and in the ticket area for producing movie ticket sales. She would also like to know how many buckets of popcorn and movie tickets will be produced/sold by those workers per day.
Access the Unit IV Assignment Worksheet in Blackboard. You will complete the following in this worksheet:
Part 1
Complete the tables calculating the average product, marginal product, total value product, average value product, and marginal value product.
Part 2
Answer the five questions after each table as a guide to use when writing your essay.
Part 3
Write an essay of at least 750 words in which you address the following:
- Describe your calculations in the table.
- Indicate the number of workers used per day where the law of diminishing marginal returns begins for producing buckets of popcorn.
- Indicate the number of workers used per day where the law of diminishing marginal returns begins for movie ticket sales production.
- Describe the shapes of both the average product and marginal product curves, and include how they compare to the average value product and marginal value product curves for both buckets of popcorn and movie tickets.
- Indicate the optimal number of workers per day to use and the corresponding total number of buckets of popcorn to produce. Make sure you indicate how you found this optimal number of workers and total number of buckets of popcorn.
- Indicate the optimal number of workers per day to use and the corresponding total number of movie tickets to sell (produce). Make sure you indicate how you determined this optimal number of workers and total number of movie tickets.
Include a copy of the completed tables and your question answers from the worksheet after your essay (e.g., on the page following your reference page, if you have one). The minimum word count will not include the information from the worksheet (tables and answers).
Any sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA Style.
Resources
The following resource(s) may help you with this assignment.
Unit V Assignment Worksheet
This worksheet is intended to help you develop the information you will use to complete your Unit V Essay. You are expected to include the completed table in your Unit V Essay. The additional questions after the tables are intended to help you formulate your ideas concerning what you will write in your essay.
Just completing this worksheet does not constitute completing the Unit V Assignment. The information from the worksheet must be incorporated into your essay submission. Follow the instructions below.
Instructions:
- Complete all parts of the Unit V Assignment Worksheet.
- Answer the questions after the table; these willhelp you formulate your ideas for writing the essay part of your Unit V Assignment. You are expected to expand on these questions in your writing.
- Include the tables and your question responses from the Unit V Assignment Worksheet as an appendix following the essay part of your Unit V Assignment.
On the next page, you are provided with a table showing the different levels of output for concession stand items that are possible as the number of workers used changes. Also included are the price of labor, the total fixed cost per day, and the average price of concession stand items. Using the information you learned from the textbook for this class as well as the information in the Unit V Lesson:
- Complete the table below concerning concession stand topics.
- Answer all of the questions listedbelow the table. As mentioned, doing this will help you when formulating your thoughts for the essay part of your Unit V assignment.
| Round These Answersto the Nearest Whole Number | Round These Answersto the Nearest Penny | ||||||||||||
| Output (Concession Stand Items) | Number of Workers Employed Per Day | Price of Labor Per Worker Per Day | Total Variable Cost of Labor | Total Fixed Costs Per Day | Total Cost Per Day | Average Price of Concession Stand Items | Total Revenue | Profit | Average Variable Cost | Average Fixed Cost | Average Total Cost | Marginal Cost | Marginal Revenue |
| 0 | 0 | $120 | $2,000 | $8.00 | |||||||||
| 100 | 2 | $120 | $2,000 | $8.00 | |||||||||
| 400 | 4 | $120 | $2,000 | $8.00 | |||||||||
| 750 | 6 | $120 | $2,000 | $8.00 | |||||||||
| 900 | 8 | $120 | $2,000 | $8.00 | |||||||||
| 1,025 | 10 | $120 | $2,000 | $8.00 | |||||||||
| 1,125 | 12 | $120 | $2,000 | $8.00 | |||||||||
| 1,200 | 14 | $120 | $2,000 | $8.00 | |||||||||
| 1,250 | 16 | $120 | $2,000 | $8.00 | |||||||||
| 1,280 | 18 | $120 | $2,000 | $8.00 | |||||||||
| 1,290 | 20 | $120 | $2,000 | $8.00 | |||||||||
| 1,289 | 22 | $120 | $2,000 | $8.00 | |||||||||
| 1,280 | 24 | $120 | $2,000 | $8.00 | |||||||||
Questions: Use your responses to these questions to help you formulate ideas for writing your Unit V Essay.
Question 1: What is the level of profit that is made by Ruby Red Movie Theater if 2 workers are employed at the concession stand and only 100 items of output are produced (sold) at the concession stand?
Answer:
Question 1a:Should Ruby Red Movie Theater continue to operate the concession stand if only 100 concession stand items are being produced (sold) by 2 workers? Why, or why not?
Answer:
Question 2: If Ruby Red Movie Theater wanted to produce (sell) 1,290 items from the concession stand, would profit be maximized? Why, or why not?
Answer:
Question 3: At what level of output and labor input are concession stand profits maximized for Ruby Red Movie Theater? What are two ways you could tell if this was correct from the table data?
Answer:
Question 4: How are average total cost and marginal cost related to marginal product and average product?
Answer:
Question 5: What do you notice about marginal revenue and the price of output (average price of concession stand items in this case)?
Answer:
Question 6: What is the maximum level of profit that can be generated from concession stand items?
Answer:
Next Step:
Once you have completed the table and answered questions 1–6 above, your next step will be to write your essay. The information from these questions should be used when writing the essay. See Unit V Assignment instructions.
- Unit V Assignment
- Weight: 10% of course grade
Instructions
Tracy, the manager at Ruby Red Movie Theater, is extremely worried about concession stand sales. Tracy has indicated that she is at a loss regarding how many employees should be working in the concession stand area and how many concession stand items should be sold per day. Tracy is even considering closing the concession stand area.
Output, labor, and price information for items sold in the concession stand area have been provided in the Unit V Assignment Worksheet. Your assignment is to help Tracy figure out the optimal number of workers and the number of items that should be sold daily. Let’s keep the concession stand open!
Access the Unit V Assignment Worksheet in Blackboard.
Complete the following in the Unit V Assignment Worksheet.
Part 1
Complete the table, calculating the total variable cost of labor, total cost per day, total revenue, profit, average variable cost, average fixed cost, average total cost, marginal cost, and marginal revenue.
Part 2
Answer the questions after the table as a guide to use when writing your essay.
Part 3
Write an essay of at least 750 words.
- Briefly describe the calculations you made when filling in the table data.
- Indicate the profit-maximizing level of output and employees along with the two ways you found this optimal level. This profit-maximizing level of output and employees will tell you how to keep the concession stand open.
- Describe the average price level for concession stand items that would be required to force the theater to shut down the concession stand in the short run, and include how you determined this level.
Include a copy of the completed table and your answers to the questions in the worksheet after your essay (e.g., on the page following your reference page, if you have one). The word count will not include the information in the table.
All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA Style.
Resources
The following resource(s) may help you with this assignment.
