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Unformatted text preview: (c) If the number of barbers is 4, what is: The average total cost of producing a haircut? The average variable cost of producing a haircut? The average fixed cost of a haircut? (d) Suppose that total fixed costs rise from $300 per day to $600 per day, as a new lease must be negotiated at a sharply higher rent. How would this affect your answer to part (b)? to part (c)? (d) Assuming that fixed costs are $600 per day (and that barbers are paid $50 per day), graph: (1) the marginal product schedule (2) the marginal cost schedule (3) the average total cost schedule (4) the average fixed cost schedule...
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This note was uploaded on 02/29/2012 for the course ECON 101 taught by Professor Unknown during the Fall '10 term at University of Toronto- Toronto.
- Fall '10