Question: The only variable input a janitorial service firm uses to clean offices is workers who are paid a wage, w, of $8 an hour. Each
The only variable input a janitorial service firm uses to clean offices is workers who are paid a wage, w, of $8 an hour. Each worker can clean four offices in an hour. Use math to determine the variable cost, the average variable cost, and the marginal cost of cleaning one more office. Draw a diagram similar to Figure 7.1 to show the variable cost, average variable cost, and marginal cost curves?
Figure 7.1: Short-Run Cost Curves
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15 VC 1,725 160 800 450 Quantity, q. Units per day 10 15 MC 125 115 AC AVC 80 45 AFC 10 15 Quantity, q. Units per day Cost per unit, $ Cost, $
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Let q equal the number of offices cleaned per hour ... View full answer
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