Question

Consider a production process where flowers are grown​ (the output) using gardeners​ (labor) and greenhouses​ (capital). The quantity of flowers grown per day with various combinations of labor and capital are shown in the table below. Suppose that each gardener is paid ​$220 per day and the greenhouse is rented for ​$500 per day. Fill in total cost in the table below. ​(Enter your responses as​ integers.)

Answer 1

The total cost for various combinations of labor and capital in the production process is obtained by summing the cost of gardeners and the cost of renting greenhouses. This can be calculated using the formula: Total Cost = (Number of Gardeners Cost per Gardener) + (Number of Greenhouses Cost per Greenhouse). The values obtained from this formula should be filled in the respective cells of the table.

Step-by-step explanation

To determine the total cost for each combination, we use the given information that each gardener is paid $220 per day, and the greenhouse is rented for $500 per day. The total cost is the sum of the cost of labor and the cost of capital. Mathematically, this is expressed as Total Cost = (Number of Gardeners $220) + (Number of Greenhouses $500).

For example, if a combination involves 2 gardeners and 1 greenhouse, the total cost would be (2 $220) + (1 $500) = $940. This calculation ensures that both labor and capital costs are considered when determining the total cost for each production scenario.

The table provided can be populated by applying this formula to each combination of labor and capital, resulting in a comprehensive understanding of the total cost associated with different levels of input in the production process.