The only variable input a janitorial service firm uses to clean offices is workers who are paid

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The only variable input a janitorial service firm uses to clean offices is workers who are paid a wage, w, of $16 an hour. Each worker can clean four offices in an hour. Use math to determine the variable cost, the average variable cost, and the marginal cost of cleaning one more office. Draw a diagram like Figure 6.1 to show the variable cost, average variable cost, and marginal cost curves.


Figure 6.1

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Managerial Economics And Strategy

ISBN: 9780134899701

3rd Edition

Authors: Jeffrey M. Perloff, James A. Brander

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