Rufus Runs a Skunk-Skinning Service in West Virginia

question 82

Essay

Rufus runs a skunk-skinning service in West Virginia.He employs skinners at a wage rate of $240 a week for each one.He leases the shack where his workers work for $200 per week.The rent is fixed for the next two years.Last week his 10 employees managed to skin a total of 300 skunks.
a.What is the average product of labor for Rufus's company?
b.What is Rufus's total variable cost per week?
c.What is the average variable cost for Rufus's company?
d.If Rufus adds his brother Jethro to his staff,at a wage rate of $240 a week,and his company can now skin 310 skunks per week,what is Rufus's new average variable cost?

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Definitions:

Societal Culture

Pertains to the shared values, norms, customs, and practices among people within a society or country.

Income

The financial gain or revenue received by an individual or organization, typically in the form of wages, salaries, or business earnings.

Norms

Socially accepted standards of behavior within a group or society.

Attitudes

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.