Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5/day. The company also rents spave where orders are prepared. Rent costs $50/day. To make the deliveries, the business also rents two delivery cars the cost $10/day. The costs of ingredients for preparing different numbers of meals are $50. Maria also has to hire between 0-10 workers to buy ingredients, prepare meals, and deliver the orders. She pays them $120/day. The first two columns of the table below shows how many meals different number of workers can prepare and deliver.  Suppose that the price of rent increases to $60/day. How many meals does the business have to deliver to earn the highest possible profit? Fill out the table as your answer.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5/day. The company also rents spave where orders are prepared. Rent costs $50/day. To make the deliveries, the business also rents two delivery cars the cost $10/day. The costs of ingredients for preparing different numbers of meals are $50. Maria also has to hire between 0-10 workers to buy ingredients, prepare meals, and deliver the orders. She pays them $120/day. The first two columns of the table below shows how many meals different number of workers can prepare and deliver. 

Suppose that the price of rent increases to $60/day. How many meals does the business have to deliver to earn the highest possible profit? Fill out the table as your answer.

Answer:
Max profit:
Workers Meals (Output
(Labor L)
Q)
0
1
2
3
4
5
67
6
8
9
10
0
30
42
52
60
67
73
79
85
90
95
MPL
FC
at
Cost of
ingredients
Q (#meals) =
VC
TC
AFC
AVC
ATC
MC
TR
Profit
Profit per
meal
Transcribed Image Text:Answer: Max profit: Workers Meals (Output (Labor L) Q) 0 1 2 3 4 5 67 6 8 9 10 0 30 42 52 60 67 73 79 85 90 95 MPL FC at Cost of ingredients Q (#meals) = VC TC AFC AVC ATC MC TR Profit Profit per meal
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