(a) Calculate marginal costs, total costs, average fixed costs, average variable costs and average total costs, given the following table. Costs are $100 when there is no production. Round off to the nearest whole number.

\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Output } & \begin{array} { l } \text { Variable } \\\text { Cost }\end{array} & \begin{array} { l } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { l } \text { Total } \\\text { Cost }\end{array} & \begin{array} { l } \text { Average } \\\text { Fixed } \\\text { Cost }\end{array} & \begin{array} { l } \text { Average } \\\text { Variable } \\\text { Cost }\end{array} & \begin{array} { l } \text { Average } \\\text { Total } \\\text { Cost }\end{array} \\\hline 0 & 0 & 0 & & & & \\\hline 1 & 60 & 60 & & & & \\\hline 2 & 90 & 30 & & & & \\\hline 3 & 110 & 20 & & & & \\\hline 4 & 150 & 40 & & & & \\\hline 5 & 230 & 80 & & & & \\\hline 6 & 350 & 120 & & & & \\\hline 7 & 510 & 160 & & & & \\\hline 8 & 710 & 200 & & & & \\\hline\end{array}

(b) Between what levels of output is there increasing marginal productivity?
(c) If labor were the only input to this production process, between what levels of output is the marginal product of labor falling?

Define a Firm and Discuss Its Roles in the Economy

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified