Microeconomics Homework

Please use the following information and use it to complete a few calculations, and answer questions in your paper.ÿ The paper ought to be written as a briefÿ (1-1.5 pages) report that includes your calculations and a short explanation of what the firm should do if it is making a loss.A firm currently uses 40,000 workers to produce 100,000 units of output per day.The daily wage per worker is $80, and the price of the firm’s output is $41. The cost of other variable inputs is $400,000 per day. Assume that total fixed cost equals $900,000. (Note: Assume that output is constant at the level of 100,000 units per day.)Calculate the values for the following variables using the formulas that are given:Total Variable Cost = (Number of Workers x Worker?s Daily Wage) + Other Variable CostsÿTotal Costs = Total Variable Costs + Total Fixed CostsÿTotal Revenue = Price * QuantityÿAverage Variable Cost = Total Variable Cost / Units of Output per DayÿAverage Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per DayProfit/Loss = Total Revenue ? Total CostsComplete the following:Is the firm making a profit or a loss?ÿExplain the Short Run Shut Down Rule. Should this firm shut down? Please explain.ÿBe sure to show your work. Include a reference list.Please submit your assignmentYour assignment will be graded in accordance with the following criteria. Clickÿhereÿto view the grading rubricThis assignment will also be assessed using the Common Assessment criteria providedÿhere.For assistance with your assignment, please use your text, Web resources, and all course materials.ÿÿÿOther InformationÿThere is no additional information to display at this time.Due Date – May 16, 2016 9:00 am.ÿOffering – $10.00