Assume a firm faces these costs: total cost of capital = $4,000; price paid for labor = $20 per labor unit; and price paid for raw materials = $8 per raw-material unit. originally the firm produced 2,000 units of output by combining its fixed capital with 200 units of labor and 500 units of raw materials. now the firm changes its production process so that it can produce 3,000 units of output by combining its fixed capital with 100 units of labor and 500 units of raw materials. what happened to average total cost?

An office manager is concerned with declining productivity. despite the fact that she regularly monitors her clerical staff four times each day—at 9: 00 am, 11: 00 am, 1: 00 pm, and again at 3: 00 pm—office productivity has declined 30 percent since she assumed the helm one year ago. would you recommend that the office manager invest more time monitoring the productivity of her clerical staff? explain.

An investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 00040,000. if the economy grows at a moderate pace, the investment will result in a profit of $10 comma 00010,000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 00040,000. you contact an economist who believes there is a 2020% probability the economy will remain strong, a 7070% probability the economy will grow at a moderate pace, and a 1010% probability the economy will slip into recession. what is the expected profit from this investment?

Amap from a trade development commission or chamber of commerce can be more useful than google maps for identifying