A firm faces the following costs: total cost of capital = $8,000; price paid for labor = $20 per labor unit; and price paid for raw materials = $6 per raw-material unit. Initially, the firm can produce 2,000 units of output by combining its fixed capital with 250 units of labor and 400 units of raw materials. After the firm improves its production process, it can produce 5,000 units of output by combining its fixed capital with 150 units of labor and 300 units of raw materials. How will the firm's total costs change as a result of the improved production process? Instructions: Enter your answers as a whole number. Total cost changes from $ ___ using the original process to $ ___ using the improved process.
A firm faces the following costs: total cost of capital = $8,000;
How will the firm's total costs change as a result of the improved production process?
Instructions: Enter your answers as a whole number.
Total cost changes from $ ___ using the original process to $ ___ using the improved process.
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