Essay
-The table above has the total product schedule for an imaginary good called a widget.Each unit of labor costs $25 and the total cost of capital is $100.
a.Use this information to complete the table.In the table,TFC is the total fixed cost,TVC is the total variable cost,TC is the total cost,AFC is the average fixed cost,AVC is the average variable cost,ATC is the average total cost,and MC is the marginal cost.
b.Suppose that labor becomes twice as expensive (so that one unit of labor now costs $50)but nothing else changes.Complete the above table with the new cost schedules.If you plotted the cost curves,how would the increased wage rate affect the cost curves?
Correct Answer:
Verified
a.The completed table is above.All the...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
a.The completed table is above.All the...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q177: A firm increases its output and its
Q178: Economic profit equals total revenue minus total<br>A)
Q179: Jeremiah runs a bullfrog farm in Frogville,Oklahoma.Jeremiah
Q180: If Melissa owns a software company that
Q182: The total product is 10 units.The average
Q183: In the long run,<br>A) some resources are
Q184: In a figure showing the average total
Q185: The average product curve<br>A) initially falls then
Q186: Dr.Khan starts his own dental practice after
Q408: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -The above table