Consider a firm that daily rents machinery for the cost of $1000 and employs workers at the cost of $100 for a full day of work. The following table describes the production function of the firm. Fill the table such that you can make some production decisions for this firm.

Units of Labor	Units of Production	Fixed Costs	Variable Costs	Total Costs	Average Variable Costs	Average Total Costs	Marginal Cost
1	11.00
2	16.24
3	19.89
4	22.48
5	24.48
6	26.13
7	27.51
8	28.71
9	29.78
10	30.72
11	31.58
12	32.36
13	33.08
14	33.75
15	34.37

1. What is the average variable cost of production when 10 units of labor are employed?

2. What is the average total cost of production when 10 units of labor are employed?

3. What is the marginal cost of production when 10 units of labor are employed?

Answer rating: 100% (QA)

Units of Labour L 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pro... View the full answer