Explore BrainMass
Share

Explore BrainMass

    the fixed cost/day

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com October 9, 2019, 4:11 pm ad1c9bdddf
    https://brainmass.com/economics/pricing-output-decisions/the-fixed-cost-day-25149

    Solution Preview

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

    Solution Summary

    Determine the fixed cost/day/

    $2.19