Posted by Kingram on Saturday, March 28, 2009 at 11:15pm.
Suppose that a firm is currently employing 30 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is: $3,600.
a. What is marginal cost?
b. What is average variable cost?
c. How much output is being produced?
d. What is average total cost?
e. Is average variable cost increasing, decreasing or constant? What about average total cost>

Economics  economyst, Monday, March 30, 2009 at 4:33pm
Take a shot, what do you think.
Hint, MC is the cost of producing the last unit. Here, the last 12 cost $60, so MC = 60/12 = $5
Answer This Question
Related Questions
 Economics  Suppose that a firm is currently employing 30 workers, the only ...
 Managerial Economics  Suppose that a firm is currently employing 10 workers, ...
 managerial eccon  Suppose that a firm is currently employing 30 workers, the ...
 Managerial ECON  Suppose that a firm is currently employing 10 workers, the ...
 Managerial ECON  Suppose that a firm is currently employing 20 workers, the ...
 economics  A firm currently uses 40,000 workers to produce 180,000 units of ...
 Economics (attempted as suggested by economyst)  Posted by eStone on Sunday, ...
 Business  A firm currently uses 50,000 workers to produce 120,000 units of ...
 Math/Economics  Suppose that a firm has only one variable input, labor, and ...
 Math/Economics  Suppose that a firm has only one variable input, labor, and ...
More Related Questions