Microeconomics

A firm currently uses 40,000 workers to produce 180,000 units per day. The daily wage per worker is $100, and the price of the firm’s output is $28. The cost other variable input is $500,000 per day. (Note assume that output is constant at the level of 180,000 units per day.)

Total Variable Cost
Total Cost
Average Variable Cost
Average Total Cost

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  3. 👁
  1. 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
    Complete the following:

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    2. 👎
  2. TVR = 4,500,000
    TV = 5,700,000
    AVC = 25
    ATC =11.4

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