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WebIf the TVC of producing 10 cakes equals $100, then AVC (10 cakes) = $100/10 = $10 per cake. Important note: Since labor (bakers) is the only variable input in the bakery (remember that Q (cakes) = f (L)), thenAVC = TVC/Q = (wL)/Q = w (1/APL), where w is the wage. (6) Average Total Cost (ATC) –this is just the sum of AFC and AVC; so ATC = AFC + AVC. WebThe table shows the production function for snack cakes and labor. Assume fixed costs are $200/day and that one full time worker costs $80/day ($10x8hrs). Given this information, what is the marginal cost of the 50th case? (assume labor is … star wars roleplaying dice
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