A firm currently uses 100 workers to produce 200 units of


A firm currently uses 100 workers to produce 200 units of output per day. The daily wage (per worker) is $80, and the price of the firm's output is $50. The cost of other variable inputs is $600 per day. The firm’s fixed cost is 8,000. The marginal cost of the last unit is $50.

Given the information, what is the profit or loss?

Should the firm continue to operate? Carefully explain your answer.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: A firm currently uses 100 workers to produce 200 units of
Reference No:- TGS01181672

Expected delivery within 24 Hours