Final answer:
The cost of variable inputs in business refers to costs that change with output levels. Marty pays $80 per day per worker, and a worker's maximum wage is based on their contribution to revenue. To calculate total costs, labor and other variable input costs must be summed, though the question does not provide details about other inputs.
Step-by-step explanation:
Understanding the Cost of Variable Inputs in Business
When discussing the cost of variable inputs in a business context, we're referring to the expenses that vary with the level of output. For example, if Marty pays each of his workers $80 per day, this is the cost per worker. If widget workers receive $10 per hour and can produce two widgets per hour, the cost of labor to produce widgets can be calculated accordingly.
If we assume the firm can sell each widget for $4 each, a worker is generating $8 per hour in revenues to the firm. Therefore, the maximum that a profit-maximizing employer would pay a worker is the amount that they contribute to revenue, in this case, $8 per hour. To find the total cost of variable inputs, we multiply the number of workers by their wage (e.g., 2 barbers would cost: 2 × $80 = $160). Then adding the fixed costs yields the total costs of operation.
To find the specific cost of the other variable inputs, one would need to identify all variable costs other than labor and add them up. However, the question provided does not specify what these other variable inputs are or their respective costs.