Capital (K)4028242013232262842 46810 1214 16 18 20 Labor (L)Q7) (Using above figure) Based on the isocost line, the ratio of the wage rate (W) torental rate of capital (R) is:a) 1.5b) 4.0c) 0.67d) 0.50

Understanding the Isocost LineAn isocost line represents all combinations of two inputs—labor (L)…

Answered: Capital (K) 40 28 24 20 13232262 8 4 2…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Total Fixed Total Variable Output (workers) (units per day) (dollars) Labor cost cost dollars) 20 25 50 20 20 13 16 31 100 4. 5.
Total Fixed Total Variable Labor (workers) (units per day) Output Cost cost (dollars) (dollars) 20 20 25 50 1 2 3 715 13 16 20 20 100 4. 5. 18 20
ATC, AAC, AVC, MC (/uni 270.00 24000 21000 180.00 150.00 120.00 10:00 60.00 30.00 0:00 02 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Units of Output (0) Unit Cost Curves Refer to the graph above. The curves are not labeled. To help get this question right, you must first label the curves. An output level of 18 is identified with the dark vertical line. The shaded rectangular area (height times width) is the O average sunk cost. O total sunk cost O total avoidable fed cost. O total avoidable cost. O None of the above
how did you get the 6.25 labor units
How do I determine variable cost? Only typed solution
1. Calculate the annual labor cost at present based on the following data (a) Labor cost index value was at 100 10 years ago and is 150 today. (b) Annual labor costs for a similar facility were $451,400 10 years ago.
Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0 90 0 0 0 0 3 1 4 90 20 110 22.5 5 27.5 5 3 2 90 90 40 130 1 0.444 1.444 0.233 3 3 160 90 60 150 0.563 0.375 0.938 0.286 3 4 200 90 80 170 0.45 0.400 0.85 0.5 3 5 230 90 100 190 0.391 0.435 0.826 0.667 3 6 250 90 120 210 0.36 0.480 0.84 1 3 7 260 90 140 230 0.346 0.538 0.885 2 3 8 265 90 160 250 0.340 0.604 0.943 4 If the firm produces 265 units of output and sells it at $1 per unit, is it making profits or losses? How much are they making?
Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0 90 0 0 0 0 3 1 4 90 20 110 22.5 5 27.5 5 3 2 90 90 40 130 1 0.444 1.444 0.233 3 3 160 90 60 150 0.563 0.375 0.938 0.286 3 4 200 90 80 170 0.45 0.400 0.85 0.5 3 5 230 90 100 190 0.391 0.435 0.826 0.667 3 6 250 90 120 210 0.36 0.480 0.84 1 3 7 260 90 140 230 0.346 0.538 0.885 2 3 8 265 90 160 250 0.340 0.604 0.943 4 If the price of the output is $1, how many units of output should the firm produce to maximize profit? What is the firm’s profit level?
Q17
No hand written solution and no img
The change in fotal costjof proaucCuọn as the output or total product of the business is expanded is: LATHE Marginal cost (b) The Total variable cost (c) Average variable cost (d) Average fixed cost
(b) A firm has an average cost function Acg) = + 125 q2 4. 16 A(q) %3D where q is the firm's output. (iv) Write an equation for the total cost function. (v) Hence calculate the level of output for which total costs are minimum.

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Capital (K) 40 28 24 20 13232262 8 4 2 4 6 8 10 12 14 16 18 20 Labor (L) Q7) (Using above figure) Based on the isocost line, the ratio of the wage rate (W) to rental rate of capital (R) is: a) 1.5 b) 4.0 c) 0.67 d) 0.50