A firm is currently producing 8 units of output; marginal cost is $18 and average total cost is $11 at this level of output. The average total cost at 7 units of output is 10 Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $4,000 and $700 of this cost is fixed. Ernie's Total Variable Cost is $ Ernie's Average Variable Cost is $ If the total product of three workers is 247 units and the total product of four workers is 255 units, then the marginal product of the fourth worker is
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Total Variable Cost = Total Cost - Fixed Cost Total Variable Cost = $4,000 - $700 Total Variable Cost = $3,300 Show more…
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