Relationship between the marginal cost and average variable

Assignment Help Business Economics

Reference no: EM136878

Assuming the price of labor is $6 per unit and the price of capital is $12 per unit; compute the total variable costs, the marginal costs, and the average variable costs for the firm.

Using the numbers that you calculated above, explain the relationship between the marginal cost and average variable cost. Using the same numbers, explain the "marginal cost" in terms of additional inputs needed to produce a marginal unit of output. If the output price was $62, how many units of output would the firm produce? Explain.

Reference no: EM136878

Questions Cloud

What general term is associated with mutationalphenomena : Clostridium and Streptococcus are both catalase-negative. Streptococcus grows by fermentation. Why is Clostridium killed by oxygen, whereas Streptococcus is not.

What basic similarities among mammals : What basic similarities among mammals and differences between mammals (the ingroup) and reptiles (an outgroup) help support the hypothesis that all mammals share a common ancestor.

What ion drives the potential : What are the three main ions that play a role in the equilibrium membrane potential. What ion drives the potential, and why. What kinds of functions might these shared genes have.

Hospital cost : A price index for nonresidential construction was 14 in 1949, 92 in 1987, and 114.5 in 2000. According to these numbers, what did the hospital cost approximately.

Relationship between the marginal cost and average variable : Using the numbers that you calculated above, explain the relationship between the marginal cost and average variable cost.

Approximate the age group and gender of the individuals : Aspirin has a pH of three. Some people who take large amounts of aspirin (for example, for arthritis) take a pill that combines aspirin with Maalox. What is the reason for this combination.

Cross elasticity of demand : The company wants to replace office equipment like machines and computer at assorted times over the five year planning period.

Capitalized cost of expenditures : What reliance performance would be measured efficient. Elucidate reliance behavior which would be considered excessive.

Trade and production : Economists argue that the move from barter to money increased trade and production. How is this possible.

User Account

All Pages