Solved

A Moving Company Has $20 in Fixed Costs Per Day

Question 131

Essay

A moving company has $20 in fixed costs per day and pays an hourly wage of $10 per worker.The moving company is paid $80 for each room of furniture it moves.The daily production function of the firm is as follows: A moving company has $20 in fixed costs per day and pays an hourly wage of $10 per worker.The moving company is paid $80 for each room of furniture it moves.The daily production function of the firm is as follows:    (A)Calculate marginal cost and average total cost for this typical firm. (B)How many rooms of furniture will this firm move in the short run? What are the profits or losses of the firm? (C)What will be the long-run adjustment in this industry? What will be the long-run price and output for a typical firm in this industry? (A)Calculate marginal cost and average total cost for this typical firm.
(B)How many rooms of furniture will this firm move in the short run? What are the profits or losses of the firm?
(C)What will be the long-run adjustment in this industry? What will be the long-run price and output for a typical firm in this industry?

Correct Answer:

verifed

Verified

(A) blured image (B)
This firm will move 4 rooms of ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents