Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 5 workers the firm produces 85 units of output. Fixed costs of production are $5 and the variable cost per unit of labor is $10. The marginal product of the sixth unit of labor is 4. Given this information, when the firm hires 6 workers the total output is amount to $ variable costs are $ production (rounded to the nearest cent) is cents. units, the fixed costs and the average total cost of
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 5 workers the firm produces 85 units of output. Fixed costs of production are $5 and the variable cost per unit of labor is $10. The marginal product of the sixth unit of labor is 4. Given this information, when the firm hires 6 workers the total output is amount to $ variable costs are $ production (rounded to the nearest cent) is cents. units, the fixed costs and the average total cost of
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.8P
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Transcribed Image Text:Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 5
workers the firm produces 85 units of output. Fixed costs of production are $5 and the variable cost per unit of labor is
$10. The marginal product of the sixth unit of labor is 4.
Given this information, when the firm hires 6 workers the total output is
amount to $
variable costs are $
production (rounded to the nearest cent) is
cents.
units, the fixed costs
and the average total cost of
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