I need a complete answer for this. Your firm currently uses 69 workers to produc

Question

I need a complete answer for this.

Your firm currently uses 69 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is 100 per day. Fixed costs are $2100 per day. What is total cost (TC)? What is average cost (AC)? What is variable cost (VC)? What is average variable cost (AVC)? Is the firm profitable? Should it stay in business in the short run? Should it stay in business in the long run? Show your work and explain your answers.

Explanation / Answer

Your firm currently uses 69 workers to produce 300 units of output per day. The daily wage
(per worker) is $100, and the price of the firm's output is $30. The cost of other variable
inputs is 100 per day. Fixed costs are $2100 per day.
What is total cost (TC)?
=2100+100L+100=2100++100+100*69= 9100
What is average cost (AC)?
=9100/300= 30.33
What is variable cost (VC)? =7000

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.