Cost and average total cost of producing units

Assignment Help Microeconomics

Reference no: EM1370306

Answer the following questions on the basis of this information for a single firm: total Cost of capital = $1000; price paid for labor = $12 per labor unit; price paid for raw materials = $4 per raw-material unit.

a. Assume the firm can produce 5000 units of out put by combining its fixed capital with 100 units of labor and 450 units of raw materials. What are the total cost and average total cost of producing 5000 units of output?

b. Now suppose the firm improves its production process so that it can produce 6000 units of out put by combining its fixed capital with 100 units of labor and 450 units of raw materials. What are the total cost and average cost of producing the 6000 units of output?

c. Refer to your answers to Ba and 8 and explain how process innovation can improve economic efficiency.

Reference no: EM1370306

Questions Cloud

Question related to proposal writing : Compare and contrast the four standard types of proposals: research, planning, implementation, and estimate proposals. What kinds of proposals have you encountered so far in your personal or professional past?

Describe a memo to your manager explain plan successfully : Describe a memo to your manager explain how you plan successfully lead your team. include the following

Finding economic profit or loss : At a product price of $56, will this company produce in the short run explain why or why not? If it is preferable to produce, what will be the profit-maximizing or loss minimizing output

Influence of stereotypes : Identify an idea or event from twentieth or twenty-first century history that was influenced by stereotypes.

Cost and average total cost of producing units : Assume the firm can produce 5000 units of out put by combining its fixed capital with 100 units of labor and 450 units of raw materials. What are the total cost and average total cost of producing 5000 units of output?

Determine abatement levels : Suppose that two power plants, company 1 and 2 release sulfur dioxide (SO2) in a small urban community that exceeds the emissions standard.

Competing values decision-making model : Prepare a memo to Axel Polwalski discussing these four grids in the competing values model. Be specific and provide examples when possible.

Explain good algorithms to solve character pathfinding : You are working on the new computer game. One of implementation problems you are trying to solve is character pathfinding. What algorithms would be good to use and explain why?

Explain what are the arguments for and against social : Explain What are the arguments for and against social responsibility on the part of businesses? Research the topic and discuss

User Account

All Pages