PART II
1. A t-shirt company has 500 workers and produces one thousand t-shirts per hour.

a. What is the t-shirt company's productivity per worker per hour?
b. The company hires one hires new one worker. Now, the company produces 1,002 t-shirts per hour. Then the company hires one more worker. Production rises to 1,004 per hour. Does the company have diminishing, constant, or increasing marginal returns at this level of production?
c. Draw and label the graph of the production function (total product curve) of the t-shirt company at these levels of production, carefully labeling all lines and points.

2. Beginning today Michael is purchasing/financing a brand new Ag3X for Grande 4 Tractor. His payment plan requires that he pay Tractors R-Us $1500 per month for 5 years. The depreciation rate for the tractor is 3% per year. Michael can earn $17,500 per year if he uses the tractor in is business. Jackson wishes to rent Michael's tractor.

a. What is Michael's annual Accounting Cost for each year for the tractor and what is the total for 5 years?
b. Based solely on your answer in a., Michael would allow Jackson to rent the tractor for no less than_____________for 5 years.
c. Jackson can earn $400 per week using the tractor. He takes a 4 week vacation each to take his family to WaterWorld. Based on this information (and Michael's year Accounting Cost) can Jackson earn a profit if he rents Michael's tractor for year 1?
d. If the interest rate at State Local Bank was 4.5% per year, would Jackson earn more money by renting and using the tractor or investing the money with State Local Bank?
e. Why would Jackson seek to rent Michael's tractor rather than purchasing/financing his own?

PART III
1. Fill in all blank variables.
2. Determine Price Elasticity of Demand if the price is increased from $75 to $100
3. Determine Total Revenue after delivering leftover food and budget items costs.
4. Only continue with your calculations if total revenue after budget item cost
& leftover food delivery is positive
5. For each level that you continued to calcuate, how much money woul be generated
from the raffle?
6. How many scholarships will be awarded?

PART II 1. A t-shirt company has 500 workers and produces one thou...