Question
In: Economics
From this data, what is the average total cost when two workers are hired?
Suppose you are given the following data:
Assume the following figures (all labor is paid equally):
Quantity = 34 units produced for 3 workers hired
10 units produced for 2 workers hired
1 unit produced for 1 worker hired
0 units produced for 0 workers hired
Fixed Cost = $50
Variable Cost = $40 total for 1 worker hired
From this data, what is the average total cost when two workers are hired?
Solutions
Expert Solution
Average total cost =total cost/quantity
total cost =variable cost +fixed cost
variable cost=L*wage
=2*40
=$80
Fixed cost =$50
Total cost =80+50=$130
Q=10
Average total cost =130/10=$13
the average total cost when two workers are hired is $13
Rahul Sunny answered 2 years agoRelated Solutions
What is the average total cost when producing three units?
Use your knowledge of cost functions to calculate the missed
cost data in the accompanying table.Round your answers to two digits after the decimal.QuantityMarginal CostFixed CostVariable CostTotal CostAverage Fixed CostAverage Variable CostAverage Total Cost01$40.002$68.003$105.00???4$20.00$400.00What is the average total cost when producing three units?
In the following market, Workers Output Marginal Product Total Cost Average Total Cost Marginal cost 0...
In the following market,
Workers
Output
Marginal Product
Total Cost
Average Total Cost
Marginal cost
0
0
1
20
2
50
3
90
4
120
5
140
6
150
7
155
Fill the column for marginal product. Can you explain
diminishing marginal product based on those numbers?
A worker cost $45 a day, and the firm has fixed cost of $80.
Use this information to fill in the column for total cost.
Fill in the column for average total cost....
Quantity Total Cost Total Fixed Cost Total Variable Cost Average Fixed Cost Average Total Cost Average...
Quantity
Total Cost
Total Fixed Cost
Total Variable Cost
Average Fixed Cost
Average Total Cost
Average Variable Cost
Marginal Cost
0
30
1
75
2
150
3
255
4
380
5
525
6
680
7
840
8
1010
9
1200
Given the quantity and total cost, calculate for total fixed
cost, total variable cost, average fixed cost, average total cost,
average variable cost, and marginal cost.
Excel formulas would be nice but not required.
How would you calculate the total profit from a number of workers hired and the wage...
How would you calculate the total profit from a number
of workers hired and the wage that they are being
paid?
1) What is the fixed cost, marginal cost, average total cost, average variable cost and average...
1) What is the fixed cost, marginal cost, average total cost,
average variable cost and average fixed cost of the following cost
function? .
2) What is the level of output that minimizes AVC? (in other
words, what is the level of output that corresponds to the minimum
of AVC?)
When the Price (marginal revenue) is less that Average Total Cost, but more than Average Variable Cost
When the Price (marginal revenue) is less that Average Total
Cost, but more than Average Variable Cost, the firm is making
___________ (positive profit/negative profit) and
should __________ (shut down/stay in
business).
1. The long run average total cost shows what happens to average (per unit) total cost...
1. The long run average total cost shows what happens to average
(per unit) total cost as a firm grows in size (adds more capital or
increases its plant size). True or false?
2. In the short run, at least one input is variable and one
input is fixed. True or false?
3. If marginal product is less than average product, average
product must be falling. True or false?
4. In the long run, all inputs are variable. True or...
Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average...
Labor
Q
Total Fixed Cost
Total Variable Cost
Total Cost
Marginal Cost
Average Fixed Cost
Average Variable Cost
Average Total Cost
0
0
25
0
1
4
25
25
2
10
25
50
3
13
25
75
4
15
25
100
5
16
25
125
(a) Complete the blank columns.
(b) Assume the price of this product equals $10.
What’s the profit-maximizing output (q)? Note: managers
maximize profits by setting MR=MC and under
perfectly competitive markets, MR=Price. Thus,
maximize profit...
what is the difference between average total cost and average variable cost ? give an example
what is the difference between average total cost and average
variable cost ? give an example
From the following information on costs of production, calculate Total Fixed Cost, Total Variable Cost, Average...
From the following information on costs of production, calculate
Total Fixed Cost, Total Variable Cost, Average Variable Cost, and
Marginal Cost.
I also need to graph the total cost curves as well as the
average and marginal cost curves.
TC = TFC + TVC so for Q=1 TC=30, assume TFC=20 so TVC=10
(20+10=30); continue with logic about
FC, it is independent of output, so it would be an incremental 20
with each additional level of output, TVC for each Q...
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