# Please use the following information and use it to complete a few calculations, and answer questions in your paper. The paper ought to be written as a brief (1-1.5 pages) report that includes your calculations and a short explanation of what the firm sho

Please use the following information and use it to complete a few calculations, and answer questions in your paper. The paper ought to be written as a brief (1-1.5 pages) report that includes your calculations and a short explanation of what the firm should do if it is making a loss.

A firm currently uses 40,000 workers to produce 100,000 units of output per day.
The daily wage per worker is \$80, and the price of the firm’s output is \$41. The cost of other variable inputs is \$400,000 per day. Assume that total fixed cost equals \$900,000. (Note: Assume that output is constant at the level of 100,000 units per day.)
Calculate the values for the following variables using the formulas that are given:
•Total Variable Cost = (Number of Workers x Worker’s Daily Wage) + Other Variable Costs
•Total Costs = Total Variable Costs + Total Fixed Costs
•Total Revenue = Price * Quantity
•Average Variable Cost = Total Variable Cost / Units of Output per Day
•Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day
•Profit/Loss = Total Revenue – Total Costs

Complete the following:
•Is the firm making a profit or a loss?
•Explain the Short Run Shut Down Rule. Should this firm shut down? Please explain.

Unlike most other websites we deliver what we promise;

• Our Support Staff are online 24/7
• Our Writers are available 24/7
• Most Urgent order is delivered with 6 Hrs
• 100% Original Assignment Plagiarism report can be sent to you upon request.

GET 15 % DISCOUNT TODAY use the discount code PAPER15 at the order form.

[order_calculator]