PRODUCTION, COST AND PERFECT COMPETITION.
A firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is $100, and the prince of the firms output is $28. The cost of other variable inputs is $500,000 per day. (Note: Assume that output is constant at levels of 180,000 units per day.)
Assume that the total fixed cost equals $1,200,000. Calculate the values for the following four formulas.
Total variable cost = (Number of workers*Worker’s daily wage) + Other Variable cost
= (40,000*100) + (500,000)