Question: 1. Draw a graph showing the AFC, AVC, AC and MC curves corresponding to the figures in the above table. 2. Calculate a new set

1. Draw a graph showing the AFC, AVC, AC and MC curves corresponding to the figures in the above table.

2. Calculate a new set of figures for each of the columns (4)–(10) if 

(a) The price of capital rose from £60 to £100; 

(b) The wage rate rose from £100 to £150. Why in the case of (a) is the marginal cost not affected? 

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