Production, Costs, and Perfect Competition

Production, Costs, and Perfect Competition Order Description A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at the level of 120,000 units per day.) Assume that total fixed cost equals $900,000. Calculate the values for the following four formulas: Total Variable Cost = (Number of Workers x Worker’s Daily Wage) + Other Variable Costs Total Costs = Total Variable Costs + Total Fixed Costs Total Revenue = Price * Quantity Average Variable Cost = Total Variable Cost / Units of Output per Day Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day Complete the following: Calculate the firm’s profit or loss. Is the firm making a profit or a loss? Explain the Short Run Shut Down Rule. Should this firm shut down? Please explain. Provide a report to the management of the firm that disusses what should be done. Be sure to show your work to support the decision that you outline in your report. Assignment Description A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at the level of 120,000 units per day.) Assume that total fixed cost equals $900,000. Calculate the values for the following four formulas: Total Variable Cost = (Number of Workers x Worker’s Daily Wage) + Other Variable Costs Total Costs = Total Variable Costs + Total Fixed Costs Total Revenue = Price * Quantity Average Variable Cost = Total Variable Cost / Units of Output per Day Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day Complete the following: Calculate the firm’s profit or loss. Is the firm making a profit or a loss? Explain the Short Run Shut Down Rule. Should this firm shut down? Please explain. Provide a report to the management of the firm that discusses what should be done. Be sure to show your work to support the decision that you outline in your report. Please submit your assignment. Your assignment will be graded in accordance with the following criteria. Click here to view the grading rubric. This assignment will also be assessed using the Common Assessment criteria provided here. For assistance with your assignment, please use your text, Web resources, and all course materials. Reading Assignment Microeconomics, Chapters 6, 7, 8 Assignment Objectives Explain concepts of microeconomics Interpret various forms of competition Predict the overall performance of an economic system Other Information There is no additional information to display at this time. Legend Extra Credit View Assignment Rubric Assignment Details Assignment Description A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at the level of 120,000 units per day.) Assume that total fixed cost equals $900,000. Calculate the values for the following four formulas: Total Variable Cost = (Number of Workers x Worker’s Daily Wage) + Other Variable Costs Total Costs = Total Variable Costs + Total Fixed Costs Total Revenue = Price * Quantity Average Variable Cost = Total Variable Cost / Units of Output per Day Assignment Overview Type: Individual Project Unit: Production, Costs, and Perfect Competition Due Date: Sun, 6/28/15 Grading Type: Numeric Points Possible: 120 Points Earned: 0 TDhies laivsesriganbmlee Lnte insg tthhe: CSoemem aosns iAgnsmsigennmt deenttails Go To: Assignment Details Learning Materials Reading Assignment My Work: Online Deliverables: Submissions Privacy Statement Terms and Conditions Contact Us © 2015 American InterContinental University. All Rights Reserved. Authorized Users Only. Total Variable Cost = (Number of Workers x Worker’s Daily Wage) + Other Variable Costs Total Costs = Total Variable Costs + Total Fixed Costs Total Revenue = Price * Quantity Average Variable Cost = Total Variable Cost / Units of Output per Day Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day Complete the following: Calculate the firm’s profit or loss. Is the firm making a profit or a loss? Explain the Short Run Shut Down Rule. Should this firm shut down? Please explain. Provide a report to the management of the firm that discusses what should be done. Be sure to show your work to support the decision that you outline in your report. Please submit your assignment. Your assignment will be graded in accordance with the following criteria. Click here to view the grading rubric. This assignment will also be assessed using the Common Assessment criteria provided here. For assistance with your assignment, please use your text, Web resources, and all course materials. Reading Assignment Microeconomics, Chapters 6, 7, 8 Assignment Objectives Explain concepts of microeconomics Interpret various forms of competition Predict the overall performance of an economic system Other Information There is no additional information to display at this time. Legend Extra Credit View Assignment Rubric