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1. Suppose Acme Clothing is operating with 20 units of capital and producing 9 units of output at an average total cost of $67, as shown in Figure 6.8. How much labor is it using?

1. Suppose Acme Clothing is operating with 20 units of capital and producing 9 units of output at an average total cost of $67, as shown in Figure 6.8. How much labor is it using?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The book's answer is 4 units of labor but please explain solution

Try It! 1. Suppose Acme Clothing is operating with 20 units of capital and producing 9 units of output at an average total cost of $67, as shown in Figure 6.8. How much labor is it using? Quantity/day Total cost AFC AVC ATC MC AFC, AVC, ATC, and MC $200 $200 150 100 1 2 3 4 5 6 7 8 $300 $363 $400 $433 $458 $200 $100 $67 $50 $40 $100 $82 567 $58 $52 $480 $500 $33 $29 $47 $43 $300 $182 $133 $108 $92 $80 $71 567 567 $70 $100 $63 $37 $33 $25 $22 $20 $38 $62 $100 $200 50 2 3 AVC ATC 10 11 $900 $538 $600 $700 $25 $22 $20 $42 4 5 6 7 8 Jackets per day $18 $64 $82 MC AFC 9 10 11
Transcribed Image Text:Try It! 1. Suppose Acme Clothing is operating with 20 units of capital and producing 9 units of output at an average total cost of $67, as shown in Figure 6.8. How much labor is it using? Quantity/day Total cost AFC AVC ATC MC AFC, AVC, ATC, and MC $200 $200 150 100 1 2 3 4 5 6 7 8 $300 $363 $400 $433 $458 $200 $100 $67 $50 $40 $100 $82 567 $58 $52 $480 $500 $33 $29 $47 $43 $300 $182 $133 $108 $92 $80 $71 567 567 $70 $100 $63 $37 $33 $25 $22 $20 $38 $62 $100 $200 50 2 3 AVC ATC 10 11 $900 $538 $600 $700 $25 $22 $20 $42 4 5 6 7 8 Jackets per day $18 $64 $82 MC AFC 9 10 11
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