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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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+3
30-
204 (28,28)
10
04
T
A'
20
20
40
B
C (49,49)
C'
60
60
(40,40)
80
Labor
K = 40
q=3000
q=2,000
q 1,000
100
120 140
OU](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80decb63-a845-4b16-8840-fe053340db09%2Fc835e6dd-6b3e-4cde-80e6-3c3b0c199a1a%2F2tlnvz_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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+3
30-
204 (28,28)
10
04
T
A'
20
20
40
B
C (49,49)
C'
60
60
(40,40)
80
Labor
K = 40
q=3000
q=2,000
q 1,000
100
120 140
OU
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