Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is $3,600.
a. What is marginal cost?
b. What is average variable cost?
c. How much output is been produced?
d. What is average total cost?
e. Is average variable cost increasing, constant, or decreasing? What about average total cost?
f. ABC publishing uses 400 printers and 200 printing presses to produce books. A printer’s wage rate is $20, and the price of a printing press is $5,000. The last printer added 20 books to total output, while the last press added 1,000 books to total output. Is this publisher making a rational decision? Explain
2 answers
What is your question??
a. What is marginal cost?
b. What is average variable cost?
c. How much output is been produced?
d. What is average total cost?
e. Is average variable cost increasing, constant, or decreasing? What about average total cost?
b. What is average variable cost?
c. How much output is been produced?
d. What is average total cost?
e. Is average variable cost increasing, constant, or decreasing? What about average total cost?
1 answer