# if a firm hire workers at \$3 week , labour is 1 and output is 6 what is the fixed cost, variable cost, total cost, AVC, ATC and MC.

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if a firm hire workers at \$3 week , labour is 1 and output is 6 what is the fixed cost, variable cost, total cost, AVC, ATC and MC.

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Step 1

Wages (W) is given as \$3.

Labor (L) is 1.

Output (Q) is 6 units.

Step 2

There is no fixed cost given. Labor cost is the variable cost.

Hence, fixed cost (FC) = 0

Also, variable cost (VC) = wages × labor

VC = \$3 × 1 = 3

Now, total cost is the addition of fixed cost and variable cost.

TC = FC + VC

= 3 + 0

= 3

Hence, TC = 3

AVC is the per unit variable cost of output.

Step 3

ATC is the per unit cost o...

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