Anna owns a dog grooming salon in Brunswick, Georgia. The above table has Anna's total product schedule. Anna pays each worker $300 per week and she pays rent of $600 a week for her salon. These are her only costs. When Anna has a staff of 6 workers, her average variable cost equals

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BlackTom AI · Accepted Answer

To approach this problem, I start by identifying which costs are variable and which are fixed. The weekly wage for each worker ($300) varies with the number of workers, so total wages are the variable cost; rent ($600 per week) is fixed and does not change with output, so it is not part of variable cost.

Next, I determine the data provided for the scenario with 6 workers. The table shows that with 6 workers, Anna produces 240 dogs groomed per week. Therefore, the total variable cost (TVC) at 6 workers is: TVC = number of workers × wage per worker = 6 × $300 = $1800.

With AVC (average variable cost) defined as TVC divided by the total output (AVC = TVC / Q), I substitute the values: AVC = $1800 / 240 dogs = $7.50 per dog.

Now I consider potential alternative interpretations:
- If someone misidentified fixed costs, they might incorrectly include rent in the variable cost. However, rent is fixed and does not depend on output, so it should not be included in TVC or AVC.
- If someone used a different output figure for 6 workers, they would obtain a different AVC; here the table clearly shows 240 dogs, which is the denominator to use.
- If one divided total wages by the number of workers instead of by output, the result would reflect average wage per worker, not AVC, which would be $300 in that flawed approach, clearly not the intended AVC.

Thus, given the definitions and the data, the correct computation yields an average variable cost of $7.50 per dog groomed at 6 workers.

经济学 215-002 家庭作业 8

Anna owns a dog grooming salon in Brunswick, Georgia. The above table has Anna's total product schedule. Anna pays each worker $300 per week and she pays rent of $600 a week for her salon. These are her only costs. When Anna has a staff of 6 workers, her average variable cost equals

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