Purchase Solution

the fixed cost/day

Not what you're looking for?

Ask Custom Question

The firm currently uses 70 workers to produce 300 units of putput per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although you don not know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed its total revenue.

Purchase this Solution
Solution Summary

Determine the fixed cost/day/

Solution Preview

Total wages per day= 70*100 = $7000
Daily variable input cost = ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Company Case Study: Linear Table Analysis On Shutting Down

    Your calculation is correct and I've attached two graphs to illustrate the shut-down decision: Average Fixed Cost (AFC) = fixed cost per day Average Variable Cost (AVC) = variable cost per day Average Total Cost (ATC) = fixed (AFC) + variable (AVC

  • Production Cost Calculations

    Average Total Cost = (Total Variable Cost +Total Fixed Cost) / Units of Output per Day ?

  • Production Cost Calculations: Production And Perfect Competition

    = (Total Variable Cost +Total Fixed Cost) / Units of Output per Day * Worker Productivity = Units of Output per Day / Number of Workers Then, assume that total fixed cost equals $3,000,000, and recalculate the values of the four variables listed

  • Fixed Cost & Variable Cost & Demand Problem

    107395 Fixed Cost & Variable Cost & Demand Problem How to calculate demand requirements for Alternative B. See attached file for full problem description. Please see the attached file.

  • Calculating profit maximizing output level in the given case

    What is the total fixed cost for the El Dorado Star? If the total fixed cost increases to $5,000, how many papers should be sold daily for profit maximization?   Fixed cost is the cost at zero ouput.

  • Output, costs and profits

    Cost +Total Fixed Cost) / Units of Output per Day Worker Productivity = Units of Output per Day / Number of Workers Then, assume that total fixed cost equals $3,000,000, and recalculate the values of the four variables listed above.

  • average variable cost

    232249 Average variable cost The cost structure of a manufacturer of cable modems is described in the following table. The firms fixed cost equal $10 per day. See the attachment.

  • How many workers should a firm lay off to break even?

    Cost +Total Fixed Cost) / Units of Output per Day Worker Productivity = Units of Output per Day / Number of Workers Then, assume that total fixed cost equals $3,000,000, and recalculate the values of the four variables listed above.

  • Costing Accounting: Budgets and Production

    CM is currently mining 180 tons of beach minerals per day for 25 days per month. 1. What is the variable cost per ton of beach sand mined? What is the fixed cost to CM per-month? 2.

View More Related Solutions