You are allotted the task of calculating the variable

Assignment Help Microeconomics

Reference no: EM13390675

You are assigned the task of computing the variable capital and labor costs for Cost Cutters production level. Below is a table with the capital and labor requirements for ten different levels of production.

Production Level	Capital	VC$12	Labor	VC$6	TVC	MC	AVC
0	0		0
1	3		6
2	6		10
3	9		13
4	12		16
5	15		20
6	18		25
7	21		31
8	24		38
9	27		46
10	30		55

Complete the table and answer the following:

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: EM13390675

Questions Cloud

Segregation of duties is important concept in internal : segregation of duties is an important concept in internal control. however segregation of duties is often a challenge

You decide to research market in terms of supply and demand : your neighbor cindy wants to start a contracting business for installing solar panels. she has heard of the cost

Use the internet to research any three successful : use the internet to research any three successful entrepreneurs of your choice. you are looking for the traits or

What type of barrier is likely getting in the way of clear : on a recent trip to india mr. yang a prominent chinese executive dined with his client himanshu jain. mr. yang

You are allotted the task of calculating the variable : you are assigned the task of computing the variable capital and labor costs for cost cutters production level. below

This assignment represents section of the marketing plan : using the waters bottling companyin module 1 continue to build the marketing plan sections for the product you have

In the month of june davis computers paid three months rent : in the month of june davis computers paid three months rent in advance. the journal entry to record this transaction

The process of initially recording business transactions in : the process of initially recording business transactions in a journal isa posting.b sliding.c journalizing.d

As a result management can be more responsive to the : a department store attempts to gain a competitive advantage by empowering its salespeople in the cosmetics department

User Account

All Pages