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A firm that produces an output that currently sells at $ 2 4 per unit. The firm uses only machinery and equipment, labor to produce
A firm that produces an output that currently sells at $ 2 4 per unit. The firm uses only machinery and equipment, labor to produce its output. The rental rate on machinery and equipment is $ 2 4 0 per unit and the wage rate is $ 2 1 6 per worker. The firm is currently producing 1 2 4 units of its output. The firm is currently operating in the short run, renting 4 units of machinery and equipment, and employing 9 workers. John is considering whether he should change the current production level. He knows that the marginal product of labor from the last worker hired is 4 . what is the firms total cost at the current level of output
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