A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at the level of 120,000 units per day.)

Assume that total fixed cost equals $900,000. Calculate the values for the following four formulas:
• Total Variable Cost = (Number of Workers x Worker’s Daily Wage) + Other Variable Costs
• Total Costs = Total Variable Costs + Total Fixed Costs
• Total Revenue = Price * Quantity
• Average Variable Cost = Total Variable Cost / Units of Output per Day
• Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day

To calculate the values for the given formulas, let's break down the information provided:

Number of workers: 50,000
Worker's daily wage: $100
Price of the firm's output: $48
Number of units of output per day: 120,000
Other variable costs: $400,000 per day
Total fixed costs: $900,000

1. Total Variable Cost = (Number of Workers x Worker’s Daily Wage) + Other Variable Costs
Total Variable Cost = (50,000 x $100) + $400,000
Total Variable Cost = $5,000,000 + $400,000
Total Variable Cost = $5,400,000

2. Total Costs = Total Variable Costs + Total Fixed Costs
Total Costs = $5,400,000 + $900,000
Total Costs = $6,300,000

3. Total Revenue = Price * Quantity
Total Revenue = $48 * 120,000
Total Revenue = $5,760,000

4. Average Variable Cost = Total Variable Cost / Units of Output per Day
Average Variable Cost = $5,400,000 / 120,000
Average Variable Cost = $45

5. Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day
Average Total Cost = ($5,400,000 + $900,000) / 120,000
Average Total Cost = $6,300,000 / 120,000
Average Total Cost = $52.50

To summarize:
- Total Variable Cost = $5,400,000
- Total Costs = $6,300,000
- Total Revenue = $5,760,000
- Average Variable Cost = $45
- Average Total Cost = $52.50

Given:

Number of Workers = 50,000
Worker's Daily Wage = $100
Price of Output = $48
Number of Units of Output per Day = 120,000
Other Variable Costs = $400,000
Total Fixed Costs = $900,000

1. Total Variable Cost:
Total Variable Cost = (Number of Workers x Worker's Daily Wage) + Other Variable Costs
Total Variable Cost = (50,000 x $100) + $400,000
Total Variable Cost = $5,000,000 + $400,000
Total Variable Cost = $5,400,000

2. Total Costs:
Total Costs = Total Variable Costs + Total Fixed Costs
Total Costs = $5,400,000 + $900,000
Total Costs = $6,300,000

3. Total Revenue:
Total Revenue = Price * Quantity
Total Revenue = $48 * 120,000
Total Revenue = $5,760,000

4. Average Variable Cost:
Average Variable Cost = Total Variable Cost / Units of Output per Day
Average Variable Cost = $5,400,000 / 120,000
Average Variable Cost = $45

5. Average Total Cost:
Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day
Average Total Cost = ($5,400,000 + $900,000) / 120,000
Average Total Cost = $6,300,000 / 120,000
Average Total Cost = $52.50