Question

Ralph pays his workers $100 each, and labor is the only variable cost. At a quantity of 2000 chickens, how many workers does he hire?.

Answer 1

Ralph hires 8 workers

What is variable cost ?

Variable costs are expenses that alter as the volume of a good or service a company produces fluctuates. Marginal costs multiplied by the number of units produced make up variable costs. They can be regarded as typical expenses as well. Total cost is divided into two parts: fixed costs and variable costs.

Workers paid = $100

Assuming $1600 is given as a Total cost for the 2000 quantity for chicken and Fixed cost is $800

Total cost = $1600 out of which $800 is the fixed cost

Variable cost =  Total cost - Fixed cost

                      = 1600 - 800

                      = 800

Numbers of workers hired = Variable cost / Workers pay

Numbers of workers hired = 800 / 100

Numbers of workers hired = 8

Therefore, the number of workers that Ralph hires is 8 workers

To learn more about variable cost from the given link  

brainly.com/question/14313017

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