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

Rahul Sunny answered 2 years ago

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