3. A firm manufactures women clothing. The following costs are incurred by the firm:(i)Cloth and Pablos$45 000S1 200(ii)(ii) Permanent workers (salary)(iv) Part-time workerThread$22 000S 1300$20 000$89 500(v)Rent(a) Calculate the total fixed cost of the firm.(b) Calculate the total variable cost of the firm.

a) Fixed costs are the costs which need to be paid irrespective of the level of production. Examples…

3. A firm manufactures women clothing The following costs are incurred by the firm: $45 000 S1 200 (i) Cloth and Pablos (ii) Thread (ii) Permanent workers (salary) (iv) Part-time worker $22 000 S 1 300 $20 000 $89 500 (v) Rent (a) Calculate the total fixed cost of the firm. (b) Calculate the total variable cost of the firm.

3. A firm manufactures women clothing The following costs are incurred by the firm: $45 000 S1 200 (i) Cloth and Pablos (ii) Thread (ii) Permanent workers (salary) (iv) Part-time worker $22 000 S 1 300 $20 000 $89 500 (v) Rent (a) Calculate the total fixed cost of the firm. (b) Calculate the total variable cost of the firm.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

See similar textbooks

Similar questions

What is the difference between fixed costs and variable costs?
How does fixed cost affect marginal cost? Why is this relationship important?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.