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il63 [147K]
3 years ago
11

The cookie company in the mall hires only labor to produce cookies. The workers are paid $80 per day, and the cost of renting th

e space in the mall is $250 per day. Number of workers Daily output (cookies) 1 200 2 400 3 600 4 700 The daily fixed costs of production are Choose one: A. $160 . B. $330 . C. $250 . D. $80 . E. $0. The labor cost per day of hiring two workers is $ . The total cost per day when three workers are hired is $ . The marginal product per day of the fourth worker is cookies.
Business
1 answer:
earnstyle [38]3 years ago
6 0

Answer: C. $250

Explanation: fixed cost are cost which do not change even when other factors Change. Example of fixed cost is ‘rent’ even if the employees increase up to a 100 this variable won't affect the cost of rent which is $250. Unlike salary that increases with an increase in workers.

Labour cost per day of hiring two workers = $80 x 2 = $160

Total cost per day when three

workers are hires. This includes both the fixed cost and labour cost

Total Cost = fixed cost + labor cost

= $250 + $80 x 3

= $490.

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