Relationship between the marginal cost and average variable

Assignment Help Business Economics
Reference no: EM136878

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.

Reference no: EM136878

Questions Cloud

What general term is associated with mutationalphenomena : Clostridium and Streptococcus are both catalase-negative. Streptococcus grows by fermentation. Why is Clostridium killed by oxygen, whereas Streptococcus is not.
What basic similarities among mammals : What basic similarities among mammals and differences between mammals (the ingroup) and reptiles (an outgroup) help support the hypothesis that all mammals share a common ancestor.
What ion drives the potential : What are the three main ions that play a role in the equilibrium membrane potential. What ion drives the potential, and why. What kinds of functions might these shared genes have.
Hospital cost : A price index for nonresidential construction was 14 in 1949, 92 in 1987, and 114.5 in 2000. According to these numbers, what did the hospital cost approximately.
Relationship between the marginal cost and average variable : Using the numbers that you calculated above, explain the relationship between the marginal cost and average variable cost.
Approximate the age group and gender of the individuals : Aspirin has a pH of three. Some people who take large amounts of aspirin (for example, for arthritis) take a pill that combines aspirin with Maalox. What is the reason for this combination.
Cross elasticity of demand : The company wants to replace office equipment like machines and computer at assorted times over the five year planning period.
Capitalized cost of expenditures : What reliance performance would be measured efficient. Elucidate reliance behavior which would be considered excessive.
Trade and production : Economists argue that the move from barter to money increased trade and production. How is this possible.

Reviews

Write a Review

Business Economics Questions & Answers

  One firm in an industry significantly

Under oligopoly if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.

  The law of demand states that other things equal

The law of demand states that other things equal

  Business owner making final decision of international aspect

As a business owner making a final decision regarding the international aspects of a business decision, you may decide to set up a table with the risks and weigh their relative importance against the rate of return you foresee

  Excise tax is levied on the buyers of a good

Excise tax is levied on the buyers of a good, then after the tax buyers will pay for each unit of the good.

  Elasticity conditions

Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.

  Us government determines that cigarette smoking

Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes.

  United states trades

The terms of trade if the united states trades 1 can of soda for 5 units of clothing.

  Behaviors of consumers and suppliers

Explain the process of how that movement occurred using behaviors of consumers and suppliers. Graph the movement between the two points as well.

  Describe maximizing utility

How many DVD's will she have to sell to keep the store open for an extra hour to make profit, if each DVD is $12.

  Methods realistic and achievable

What are some methods for improving the financing of the U.S. health care system. Are these methods realistic and achievable? Justify your answer with solid reasoning and appropriate references.

  Non-transactions deposits

The currency-deposit ratio has been and is likely to remain relatively stable. The ratio of non-transactions deposits to transactions deposits increased by a factor.

  Varied making expenditures

The GDP is a total market value of final goods and services produced within a country over time. Why is this a reflection of this country's cost of living so varied making expenditures.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd