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Suppose That for a Particular Firm the Only Variable Input

question 7

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Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 4 workers, the firm produces 50 units of output. If the fixed cost of production is $4, the variable cost per unit of labor is $20, and the marginal product of labor for the fifth unit of labor is 2, what is the average total cost of production when the firm hires 5 workers?


Definitions:

Biodiversity

The variety of life in all its forms, levels, and combinations, including ecosystem diversity, species diversity, and genetic diversity.

Lake Zone

An area or region surrounding or within a lake, characterized by distinct ecological and environmental attributes.

Benthic Zone

refers to the ecological region at the lowest level of a body of water such as an ocean, lake, or stream, including the sediment surface and some sub-surface layers.

Littoral Zone

The littoral zone is the area of a lake or ocean shore that is close to the shore, often characterized by shallow waters, where sunlight reaches the bottom allowing aquatic plants to grow.

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