# Managerial ECON

Suppose that a firm is currently employing 20 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 been produced?

d. What is average total cost?

e. Is average variable cost increasing, constant, or decreasing? What about average total cost?

f. ABC publishing uses 400 printers and 200 printing presses to produce books. A printer’s wage rate is \$20, and the price of a printing press is \$5,000. The last printer added 20 books to total output, while the last press added 1,000 books to total output. Is this publisher making a rational decision? Explain

1. 👍 0
2. 👎 0
3. 👁 122

1. 👍 0
2. 👎 0
2. a. What is marginal cost?

b. What is average variable cost?

c. How much output is been produced?

d. What is average total cost?

e. Is average variable cost increasing, constant, or decreasing? What about average total cost?

1. 👍 0
2. 👎 0

## Similar Questions

1. ### managerial eccon

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. what is

asked by stacey on October 3, 2010
2. ### Managerial ECON

Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of \$100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is \$5,000 a.

asked by lost on November 6, 2011
3. ### Managerial Economics

Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of \$100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is \$5,000.

asked by Dede on November 3, 2010
4. ### Economics

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

asked by eStone on March 29, 2009
5. ### Economics

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

asked by Kingram on March 28, 2009
6. ### Math/Economics

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are \$6 and the variable cost per unit of

asked by Bill on October 18, 2011
7. ### Math/Economics

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are \$6 and the variable cost per unit of

asked by Bill on October 18, 2011
8. ### econ question

2 questions that im stuck on!!! 1. Suppose a firm has a production function Q = 3(squareroot)N, where N is labour. Suppose the wage is 3, and the price of the output 4. (a) Write the Firm profits (b) Calculate the firm optimal

asked by tofu on March 10, 2007
9. ### Economics

The 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 firm’s output is \$25. The cost of other variable inputs is \$400,000 per day. Assume that

asked by Angela on May 23, 2011
10. ### microeconomics

A firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is \$100, and the price of the firm's output is \$28. The cost of other variable inputs is \$500,000 per day. (Note: Assume

asked by bushra on August 14, 2015

More Similar Questions