Question

In: Economics

The only variable input a janitorial service uses to clean classrooms is workers who are paid...

The only variable input a janitorial service uses to clean classrooms is workers who are paid $8 an hour. Each worker can clean 4 classrooms in an hour. Determine equations for and graph the variable cost, average variable cost and marginal cost of cleaning offices

Solutions

Expert Solution

Variable cost is cost of hiring labor. It is wL and given that each unit of L produces 4 units which means Q = 4L

Hence L = 0.25Q and so C = wL

C = 8*0.25Q

C = 2Q

Variable cost is 2Q

AVC is VC/Q = 2

MC = dTVC/dQ = 2

Hence MC = AVC = 2 and VC = 2Q


Related Solutions

the only variable input a janitorial service uses to clean offices are workers who are paid...
the only variable input a janitorial service uses to clean offices are workers who are paid a wage of $20 an hour, known as w. each worker is capable of cleaning 10 offices in one hour. A) determine the average variable cost and marginal cost of cleaning one extra office b) draw the diagram of the total cost, average variable cost, and marginal cost curves showing their relationships c) how will these curves change with a lump sum franchise tax...
If you owned a business and labour is the only variable input, explain: a) using numerical...
If you owned a business and labour is the only variable input, explain: a) using numerical examples, how decreasing marginal product of labour will affect your marginal returns and marginal cost.   2 Marks b) how a change in marginal cost can affect your average total cost and your profit.  
An economy uses only labor as input to produce two goods, A and B. If its...
An economy uses only labor as input to produce two goods, A and B. If its production possibilities frontier (PPF) of two goods is a negative-sloped straight line, what is the implication in opportunity costs? Will the law of increasing costs still hold? Please state briefly.
How are workers affected by employers' policies to only hirethose who are already employed?
How are workers affected by employers' policies to only hire those who are already employed?
Consider a firm that operates using only a single variable input, labor (denoted ℓ). The production...
Consider a firm that operates using only a single variable input, labor (denoted ℓ). The production function of this firm is given by: Φ(ℓ)=?=2√ℓ where ? denotes output. The firm is a price-taker in both the output market and the input market for labor. Each unit of labor costs the firm ?>0. The market price for the firm’s output is given by ?>0. (a) Show that the firm’s total cost function is ??(?;?)= (?/4)?2 and  Show that the firm’s profit function...
Consider a firm that operates using only a single variable input, labor (denoted ℓ). The production...
Consider a firm that operates using only a single variable input, labor (denoted ℓ). The production function of this firm is given by: Φ(ℓ)=?=2√ℓ where ? denotes output. The firm is a price-taker in both the output market and the input market for labor. Each unit of labor costs the firm ?>0. The market price for the firm’s output is given by ?>0. Show that the firm’s profit function is ?∗(?,?)=?2?. Show that ?∗(?,?) is homogeneous of degree one and...
C++ Instructions A company hired 10 temporary workers who are paid hourly and you are given...
C++ Instructions A company hired 10 temporary workers who are paid hourly and you are given a data file that contains the last name of the employees, the number of hours each employee worked in a week, and the hourly pay rate of each employee. You are asked to write a program that computes each employee’s weekly pay and the average salary of all employees. The program then outputs the weekly pay of each employee, the average weekly pay, and...
Call a log-space reduction a reduction that uses only O(logn) space in addition to the input...
Call a log-space reduction a reduction that uses only O(logn) space in addition to the input itself, and not counting the produced result. In other words, there are three tapes: tape 1 is read-only (the input), tape 2 is read-write (the work tape), and tape 3 is write-only (the output tape). Then we insist that tape 2 use O(logn) space (tape 3 is unrestricted, but remember it is write-only). Such a reduction is denoted ≤L. Show that 3SAT ≤L CLIQUE.
“Trade is only good for big multinational companies who gain from trade by exploiting the workers...
“Trade is only good for big multinational companies who gain from trade by exploiting the workers of low-wage countries.” Sounds like a comment made by opposers of free trade during the Seattle WTO ministerial conference. Comment on this
There are specific rules that apply to issuing and completing the Record of Employment (ROE) for commission employees who are paid by commission only.
Please build your answer based on following study book text: Block 6 – Pay period type The pay period type for commission employees is always reported as weekly on the ROE, regardless of the actual pay period type used. Block 12 – Final pay period ending date The final pay period ending date should be the Saturday of the week in which the last day for which paid, reported in Block 11, occurs. Block 15B Insurable Earnings As a commission...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT