Answer to Question #192536 in Microeconomics for Aiman jamal

Question

if the price land is 1000 and firm pay 750 to each worker then calculate fixed cost variable cost marginal cost average variable cost average fixed cost and average total cost

Answer 1

TOTAL COST = TOTAL VARIABLE COST +TOTAL FIXED COST.

AVERAGE TOTAL COST= TOTAL COST/LABOUR

AVERAGE FIXED COST= TOTAL FIXED COST/LABOUR

AVERAGE VARIABLE COST= TOTAL VARIABLE COST/LABOUR.

MARGINAL COST= CHANGE IN TOTAL COST/CHANGE IN LABOUR.

Given fixed price of land- 1000.

Firm pay to each worker- 750.