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The table attached shows total amount to build the swimming pool, average costs, total labor costs
average labor costs that vary depending on the number of employees you hire for your pool company.
1. How do I calculate the total value of the 3 people, how was the value calculated?
2. What is the total labor cost with 4 people in the pool, and explain the method for the calculation.
3. Analyze the relationship between average benefits and average costs by filling in the blanks in the following statement:
4. If a another team wants to build the pool, as long as their average benefit exceeds their average cost, then this results in ________ people being hired and a net benefit (total donations minus total labor costs) of ________?
5. What is the marginal benefit (in terms of extra donations) of the 2nd person?
6. How does the marginal cost of the 4th person will increase the total labor cost.
7. What’s the net benefit of hiring people for the pool is the largest?
Number ofAverage DonationsTotal Labor CostsAverage LaborEmployeesTotal DonationsCosts$30,000$8,0002$42,426$17,000$17,321$27,0004$60,000$9,500$13,416$50,000
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