Recalculate the values of the four variables listed

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A 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 cot of other variable inputs is $400,000 per day. Assume that total fixed cost equals $1,00,000, calculate the values for the following 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
Then assume that total fixed cost equals $3,000,000, then recalculate the values of the four variables listed.

Reference no: EM13222515

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