Business, 29.11.2019 06:31 ginachuquiano450
Afirm faces the following costs. its total cost of capital = $1,000; its price paid for labor = $12 per labor unit; and its price paid for raw materials = $4 per raw-material unit.
a. suppose the firm can produce 5,000 units of output this year by combining its fixed capital with 100 units of labor and 450 units of raw materials. what are the total cost and average total cost of producing the 5,000 units of output?
b. now assume the firm improves its production process so that it can produce 6,000 units of output this year by combining its fixed capital with 100 units of
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Afirm faces the following costs. its total cost of capital = $1,000; its price paid for labor = $12...
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