Suppose that Bill owns an automobile collision repair shop and the table below shows the quantity of
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Question:
Suppose that Bill owns an automobile collision repair shop and the table below shows the quantity of cars repaired per month according to how many workers Bill hires. Assume he pays each worker $6,000 per month and his
fixed cost equals $6,000 per month. Using the information provided, complete the table given below. (Enter your responses rounded to two decimal places.)
| Quantity of workers | Quantity of cars per month | Fixed cost | Variable cost | Total cost | Average total cost |
|---|---|---|---|---|---|
| 0 | 0 | 6000 | |||
| 1 | 20 | ||||
| 2 | 30 | ||||
| 3 | 40 | ||||
| 4 | 50 | ||||
| 5 | 55 |
Fixed Cost:
In the production theory, the term fixed cost can be defined as the cost that a business incurs at its start-up level. This cost does not vary with the level of production. Therefore, it remains constant over time.
Expert Answer:
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