Rufus runs a skunk-skinning service in West Virginia. He employs skinners at a wage rate of $240 a week for each one. He leases the shack where his workers work for $200 per week. The rent is fixed for the next two years
Last week his 10 employees managed to skin a total of 300 skunks. a. What is the average product of labor for Rufus's company? b. What is Rufus's total variable cost per week? c. What is the average variable cost for Rufus's company? d. If Rufus adds his brother Jethro to his staff, at a wage rate of $240 a week, and his company can now skin 310 skunks per week, what is Rufus's new average variable cost?
a. The average product of labor is 30 skunks skinned per worker.
b. The total variable cost per week is $2,400.
c. The average variable cost is $8 per skunk skin.
d. The new total variable cost is $2,640. Hence the new average variable cost is $8.52 per skunk skin.
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Pat's Catering finds that when it caters 20 meals a week, its total cost is $6,000. If Pat has total variable cost of $5,000, what is Pat's total fixed cost?
A) $50 B) $250 C) $1,000 D) $6,000
Refer to the above figure. The profit-maximizing price for this firm is
A) P1. B) P2. C) P3. D) P4.
In any monetary system, the means of payment must be the same as the unit of value
a. True b. False
For a monopolist, the marginal revenue gained when one more unit of output is sold is
A. the average revenue created by the increased sales. B. negative if price is above the midpoint of the demand curve. C. equal to the price of the product. D. the price at which the extra unit is sold minus the loss in revenue that results from cutting the price on units sold previously.