Question

The only variable input a janitorial service firm uses to clean offices is workers who are paid a​ wage, w, of ​$88 an hour. Each worker can clean four offices in an hour. Use math to determine the variable​ cost, the average variable​ cost, and the marginal cost of cleaning one more office. The variable cost of cleaning the first office is​$____,average variable cost of cleaning one more office is​$____,and marginal cost of cleaning one more office is​$____.​(Enter your response rounded to two decimal​places.)q, Offices cleanedCost, Cost per unit, $ (a graph was supposed to show up, Can you graph this also?)

Answer 1

Answer:

Answer : Average Marginal Cost, Marginal Cost = $2

The total cost per hour of the janitorial service firm = $32

Explanation:

The janitorial firm only uses labour as an input to clean offices and there are no fixed costs. This implies that the total cost is only the variable cost.

Each worker can clean 4 offices in an hour, therefore the output of each labour is 4units per office cleaned. The price/wages paid to each worker isb $8 per hour.

The total cost per hour of the janitorial service firm is $8x4 = $32 (wxq)

Now to clean one more office, the time required will be 15minuites, because each worker can clean 4 offices in an hour. To clean one more office , each worker will be paid $2($8/4)

The variable cost/total cost, average variable cost and the marginal cost of cleaning one more office will be

Variable cost =w.q = 2q

Average Variable Cost = VC/q = 2q/q = $2

sine the marginal cost also varies directly as the average marginal cost , the Marginal Cost is $2