Calculate average total cost, average fixed cost, average variable cost, and marginal cost of each output in the table. Plot these points and sketch the short-run average and marginal cost curves passing through them.
Sue’s Surfboards, in Problem 3, hires workers at $500 a week and its total fixed cost is $1,000 a week.
In problem 3
Labor Output
(workers (surfboards
per week) per week)
1 …………………….. 30
2 …………………….. 70
3 ……………………..120
4 ……………………..160
5 ……………………..190
6 ……………………..210
7 ……………………..220