Question: A firm faces the daily production schedule outlined below Table: Firm Production Schedule with Costs Total Fixed Variable Total Marginal Average Average Average Fixed Variable

 A firm faces the daily production schedule outlined below Table: Firm

Production Schedule with Costs Total Fixed Variable "Total Marginal Average Average Average

A firm faces the daily production schedule outlined below Table: Firm Production Schedule with Costs Total Fixed Variable "Total Marginal Average Average Average Fixed Variable | Product Marginal Cost Cost Cost Cost Total Cost Fixed Cost Variable Cost Input Input (g) Product (FC) (VC) (TC (MC) (AC) (AFC) (AVC) 2 92 3 The firm uses 3 units of capital (the Fixed Input), and the rent on capital is $200 per unit per day. The firm must hire between 1 to 5 units of labor (the Variable Input), and the cost of labor is $60 per worker per day. Depending on how much labor the firm hires, output (Total Product) is one of the following: q1=1 92= 3 93= 8 94=12 95= 15 What is the Average Total Cost (AC) when 4 units of labor are used? (Do not include the dollar sign S in your answer)

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