The firm currently uses 50,00 workers to produce 200,000 units of output per day. The daily wage per worker is $80.00, and the price of the firm's output is $25.00. The Cost of other varibles inputs is $400,000 per day.
Assume that total fixed cost equals $1,000,000. Calculate the values for the following formulas:
Total variable Cost = (# of workers * Workers Daily Wage) + Other variable Costs