The marginal cost of watching another video is really low, but that marginal benefit is through the roof!

Practice: Donny Saltlife shapes surfboards in Hawaii. He leases two production machines, paying $300 each per week. He cannot increase the number of machines he leases in his contract. He can hire as many workers as he wants at a cost of $400 per week. These are his only two inputs to produce surfboards. Fill in the remaining columns in the table below.

Practice: A firm that sells headphones has the following average total cost schedule: The company currently produces and sells 600 units. A desperate customer calls and offers $550 for a pair of headphones. Should the company accept the offer?