What is the average variable cost for each level of output

Assignment Help Financial Management

Reference no: EM131881546

Question : A firm has the following output and labor combinations, given 20 units of capital:

L 10 11 12 13 14

Q 48 55 61 65 67

a) Calculate the average product of labor and the marginal product of labor when L=11, 12, 13, and 14.

b) Suppose that capital costs $30 per unit (r = $30). What is the average fixed cost for each level of output?

c) Suppose that labor costs $40 per unit (w = $40). What is the average variable cost for each level of output?

d) Calculate the marginal cost for Q at levels of 55, 61, 65, and 67.

Reference no: EM131881546

Questions Cloud

Prepare the journal entry to record the redemption : On January 2, 2012, Sunland Corporation issued $1, 250,000 of 10% bonds at 97 due December 31, 2021. Prepare the journal entry to record the redemption.

What decision would you make regarding this controversy : 1. If you were the president of the Delta Steel Company, what decision would you make regarding this controversy? Explain why.

What does the characteristic line show : Illustrate graphically, and clearly explain the concept of Acme Company's Characteristic line.What does the Characteristic Line show?

How could a restaurant use the principles of mps-mrp : How could a restaurant use the principles of MPS/MRP? Describe in detail (around 1 paragraph) an example of how MPS/MRP could be applied

What is the average variable cost for each level of output : Suppose that capital costs $30 per unit (r = $30). What is the average fixed cost for each level of output?

Compute the work in process inventory at june : During July, jobs no. 103 and 104 were completed, and jobs no. 101, 102, and 104 were delivered to customers. Compute the work in process inventory at June 30

Why would a company choose a lot-for-lot strategy : Why would a company choose a Lot-for-Lot strategy over a Fixed Order Quantity strategy?

Calculate the expected value for firm cs eps : Calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and sA = $3.61; E(EPSB) = $4.20, and sB = $2.98.

Discuss the trade-offs involved in reducing : Discuss the trade-offs involved in reducing or mitigating these risks.

User Account

All Pages