If the wage rate 'W' is $25 and the cost of capital is $25, calculate the average cost of producing 2,000 units in the long-run. AC = $ (round your answer to the nearest penny). In the short-run, with the amount of capital fixed at 40 units, average total cost of producing 2,000 units is long-run average costs. Capital 120- 110- 100- 90- 80 70- 60 50 40---- 30 204 (28,28) 10- 0 0 A' 20 20 40 C (49,49) . 60 60 (40,40) 80 Labor K-40 q=3000 q 2,000 q 1,000 100 120 140

If the wage rate 'W' is $25 and the cost of capital is $25, calculate the average cost of producing 2,000 units in the long-run. AC = $ (round your answer to the nearest penny). In the short-run, with the amount of capital fixed at 40 units, average total cost of producing 2,000 units is long-run average costs. Capital 120- 110- 100- 90- 80 70- 60 50 40---- 30 204 (28,28) 10- 0 0 A' 20 20 40 C (49,49) . 60 60 (40,40) 80 Labor K-40 q=3000 q 2,000 q 1,000 100 120 140

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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