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A firm only uses one input in its production function, labor ( = ) to produce car rides (all the workers provide their own cars,
A firm only uses one input in its production function, labor ( = ) to produce car rides (all the workers provide their own cars, gas, etc.). Each worker who is hired provides four (4) rides per day which are sold at a price of $5 per ride. The firm's total cost (TC) 12 function is = 4 + + where () is the wage. The first expression in the cost function is non-wage costs related to labor e.g., payroll processing costs, health insurance subsidy etc., the second expression is wage costs, and the F is fixed costs
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