The cookie company in the mall hires only labor to produce cookies. The workers are paid $80 per day, and the cost of renting the space in the mall is $250 per day. Number of workers Daily output (cookies) 1 200 2 400 3 600 4 700 The daily fixed costs of production are Choose one: A. $160. B. $330. C. $250. D. $80. E. $0. The labor cost per day of hiring two workers is $. The total cost per day when three workers are hired is $. The marginal product per day of the fourth worker is cookies.

Question

Alexa Freeman

Business

2 September, 21:58

The cookie company in the mall hires only labor to produce cookies. The workers are paid $80 per day, and the cost of renting the space in the mall is $250 per day. Number of workers Daily output (cookies) 1 200 2 400 3 600 4 700 The daily fixed costs of production are Choose one: A. $160. B. $330. C. $250. D. $80. E. $0. The labor cost per day of hiring two workers is $. The total cost per day when three workers are hired is $. The marginal product per day of the fourth worker is cookies.

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Ella Hooper · Answer 1

Answer: C. $250

Explanation: fixed cost are cost which do not change even when other factors Change. Example of fixed cost is 'rent' even if the employees increase up to a 100 this variable won't affect the cost of rent which is $250. Unlike salary that increases with an increase in workers.

Labour cost per day of hiring two workers = $80 x 2 = $160

Total cost per day when three

workers are hires. This includes both the fixed cost and labour cost

Total Cost = fixed cost + labor cost

= $250 + $80 x 3

= $490.