Consider a typical office-cleaning firm that
currently faces $24 in fixed costs and an $8 hourly
wage
for workers. The price the firm gets for
each office cleaned in a large office building
is $56 at the present equilibrium. The production
function of the firm is shown in the following
table.
Number of Offices
Cleaned
Hours of Work
0
O
1
5
2
9
3
15
22
4.
Lind marginal costs and average total costs for
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