Calculate the values for the four formulas

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The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, & the price of the firm's output id $25. The cost of other variable inputs is $400,000 per day.

Assume that total fixed cost equals $1,000,000. Calculate the values for the four formulas:

Total Variable Cost = (Number of Workers * Worker's Daily Wage) + Other Variable Costs
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
Worker Productivity = Units of Output per Day / Number of Workers

Calculate the firm's profit or loss. If there is a loss how many worker's need to be laid off in order for the company to break even?

Reference no: EM13187935

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