Kim hires students to sell magazine subscriptions at $300 per student per week.
ID: 1129283 • Letter: K
Question
Kim hires students to sell magazine subscriptions at $300 per student per week. She leases equipment that Labor (students) Output (subscriptions per week) costs S300 per week. The table gives Kim's total product schedule Suppose Kim sells 12 subscriptions a week Calculate her total cost, average total cost, and marginal cost. 12 14 15 >>>Answer all questions to 2 decimal places. Total cost is sa week when Kim sells 12 subscriptions a week When Kim sells 12 subscriptions a week, average total cost is S a house. When Kim sells 12 subscriptions a week, marginal cost is a houseExplanation / Answer
total cost for 12 subscription is
300+300*4 = 1500
average total cost is calculated as total cost divided by output,
so 1500/12 = 125
marginal cost is the additional cost of producing an additional unit of a commodity, here Marginal cost is
300, as an additional worker is used if we want to increase output to 12 from the earlier output level.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.