A firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firmÃ¢â‚¬â„¢s output is $25. The cost of other variable inputs is $400,000 per day.
Assume that total fixed cost equals $1,000,000. Calculate the values for the following four formulas:
Total Variable Cost = (Number of Workers x WorkerÃ¢â‚¬â„¢s Daily Wage) + Other Variable CostsAverage Variable Cost = Total
23 Jan 2014