Question Details

1) Consider a firm that has just entered into a long-term lease for a plant at a cost of $25,000. Each worker is paid $12.50 per hour. All other costs (of materials, etc.) are zero. Based on this information, fill in the table in this Excel file. 2) For the data above, plot the following three curves: Average Variable Cost, Average Fixed Cost, Marginal Cost. 3) Explain how each of the following would impact the firm's Average Variable Cost, Average Fixed Cost, and Marginal Cost Curves. a. A decrease in wages b. An increase in material costs (from $0 to greater than $0) c. The government imposes a fixed amount of tax. d. The rent that the firm pays on the building that it leases decreases. 4) Briefly discuss how an understanding of different costs is useful when making business decisions Finance Help, Finance Homework help, Finance Study Help, Finance Course Help