Ask Question
8 August, 17:17

Melody owns and runs a hot yoga studio. Assume that Melody has no fixed costs and that her only costs of production are the instructors she hires to teach classes. Melody's output is measured in terms of the number of students who take classes in a given week. When Melody hires one instructor, the studio's output is 400 students. When Melody hires two instructors, the studio's output is 600 students, and when Melody hires three instructors, the studio's output is 700 students. The average total cost when Melody hires two instructors is $10. What is the total cost when Melody hires two instructors

+2
Answers (1)
  1. 8 August, 17:24
    0
    Total cost = $6,000.

    Explanation:

    Notice that Melody's output is measured in terms of the number of students.

    Therefore, the average total cost, which is a function of cost per unit of output, is given in terms of the number of students by the equation:

    Average total cost = Total cost / number of students

    When Melody hires two instructors, the studio's output is 600 students, and the average total cost is $10; then:

    $10/student = Total cost / 600 students

    Total cost = ($10/student) * 600 students = $6,000 ← answer
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Melody owns and runs a hot yoga studio. Assume that Melody has no fixed costs and that her only costs of production are the instructors she ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers