The first two columns in the following table give a firm?s short-run production function when the only
Question:
The first two columns in the following table give a firm?s short-run production function when the only variable input is labor, and capital (the fixed input) is held constant at 5 units. The price of capital is $2,000 per unit, and the price of labor is $500 per unit.
a. Complete the table.b. What is the relation between average variable cost and marginal cost? Between average total cost and marginal cost?c. What is the relation between average product and average variable cost? Between marginal product and marginal cost?
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COST AVERAGE COST UNIT OF LABOUR OUTPUT AP MP FIXED VARIABLE TOTAL FIXED VARIABLE TOTAL MARGINAL COST 0 0 XX XX 10000 0 10000 XX XX XX XX 20 4000 200 200 10000 10000 20000 25 25 5 25 40 10000 250 300 ...View the full answer
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Related Book For 
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021909
12th edition
Authors: Christopher Thomas, S. Charles Maurice
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