You manage a firm that currently employs 20 workers. Labor is the only variable input, and the wage rate is $60 per worker. The average output per worker is 30; the last worker hired added 12 units to total output. Total fixed cost is $3,600.
1. How much output is produced?
2. What is marginal cost?
3. What is average variable cost?
4. What is average total cost?
5. Is average variable cost increasing, constant, or decreasing?
6. What about average total cost – is it increasing, constant, or decreasing?
The post Managing employees and workers first appeared on COMPLIANT PAPERS.