Instacart offers consumers a convenient form of home delivery service for groceries. Units of output (q) are individual grocery deliveries/day. Grocery deliveries are achieved through the use of delivery trucks (K) and workers (L). The price of labor (w) is $10/worker. Use the provided graph to answer the question below. K 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 A B C D q=100 9-50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 L Instacart is currently operating in the short run with its capital stock (its trucks) fixed at ( K = 3 ). Let's say it wants to expand its production up to 100 grocery deliveries/day. What is Instacart's short run total fixed cost of producing 100 grocery deliveries/day? (Do not use dollar signs [$] for your answer, only write the numerical value of the firms' SR TFC at q = 100).

Seton is interested in reducing costs while maintaining quality and patient satisfaction. You have been hired by the Seton Hospital System to improve efficiency. In particular, Seton believes that it is not efficiently combining physician labor hours (L) and physical capital units (K) in producing stent surgeries. Assume that we know that the production function is Q = KL. Assume that the price of L is $1/hr and the price of K is $4 per unit. a. How might Seton use more capital and less labor to install the same stent? What does that real-life tradeoff look like? b. We are going to find the cost minimizing way of producing 100 stent surgeries at Seton. Begin by drawing yourself a picture of how you will solve this problem. Place K on the vertical axis and L on the horizontal axis. c. Write the budget constraint and find the equation of the slope of this line (dk/dL)

Goleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = M.5 B.5 and wants to produce 10 barrels of pale ale this week. If the wage of managers is $50 per hour and the wage of brewing assistants is $10 per hour, how many managers and brewing assistants should the firm hire (round to nearest whole number)? How does your answer change when the wage of managers decreases to $30 per hour and the wage of brewing assistants remains constant. Is this result consistent with your intuition?

Suppose that Zamboni Enterprises is the only company that sells zambonis (ice resurfacing machines). To produce the machines, the company hires assembly workers. Since these workers can work in many different companies, Zamboni Enterprises must pay them the market wage, which is equal to $6. The number of zambonis that the company produces, which is denoted by y, is proportional to the number of assembly workers that it hires, which are denoted by N; in particular, the production function is given by y=0.76N. The economywide demand for zambonis is given by the following demand function: y=2191-219p, where y is the number of zambonis that consumers are willing to purchase at price p.  Given this market structure, how many assembly workers will Zamboni Enterprises choose to hire? How many zambonis will Zamboni Enterprises produce and sell? What will be the price of a zamboni? If the market for zambonis were competitive, how many zambonis would be produced? If the market for…