Answer: Production Costs of a Firm
1) To improve productivity, a local bakery runsley machine that mixes, partitions, and then bakes dough for a variety of pastries. The machine costs the business $2500 per month to rent and operate, regardless of output. The cost of renting the machine is classified as?
A fixed cost
2) When a firm is producing at the level of output that maximizes profit, which of the following is true?
Marginal revenue is equal to marginal cost.
3) A restaurant produces 250 meals per day with 5 employees. After hiring an additional employee, the restaurant now produces 260 meals per day. Calculate the marginal product of labor.
10
4) If the cost of labor is the only variable cost that the firm faces, what is the cost incurred by the business for each additional cost of labor?
$16
5) What is the marginal cost of producing the 45th unit of output?
$15.40
Explanation: 5/5 quickcheck