31 May Question You are assigned the task of computing the variable capital and labor costs for Cost Cutters production level. Below is a table with the capital and labor requirements for ten different levels of pro
Question
You are assigned the task of computing the variable capital and labor costs for Cost Cutters production level. Below is a table with the capital and labor requirements for ten different levels of production.
| Production Level | Capital | VC$12 | Labor | VC$6 | TVC | MC | AVC |
| 0 | 0 | ||||||
| 1 | 3 | ||||||
| 2 | 6 | ||||||
| 3 | 9 | ||||||
| 4 | 12 | ||||||
| 5 | 15 | ||||||
| 6 | 18 | ||||||
| 7 | 21 | ||||||
| 8 | 24 | ||||||
| 9 | 27 | ||||||
| 10 | 30 |
Complete the table and answer the following:
- Assuming the price of labor is $6 per unit and the price of capital is $12 per unit; compute the total variable costs, the marginal costs, and the average variable costs for the firm.
- Using the numbers that you calculated above, explain the relationship between the marginal cost and average variable cost. Using the same numbers, explain the “marginal cost” in terms of additional inputs needed to produce a marginal unit of output.
- If the output price was $62, how many units of output would the firm produce? Explain.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.