You are given the following short-run information for an individual firm. Labor (L) is the only variable input. The price of labor is $200/week. Total Fixed costs are $1000/week.

a. Complete the rest of the table.

b. What pattern can you see from the column of marginal product of labor? How might you explain it?

c. Draw the MPL and MC curves respectively. Describe the relationship between the MPL and MC.

Transcribed Image Text:

Labor L 012MTS67 3 4 5 Total product 0 0 20 50 90 120 140 150 155 MPL ➖➖➖➖➖➖➖ TVC TC ATC ****** $ MC Labor L 012MTS67 3 4 5 Total product 0 0 20 50 90 120 140 150 155 MPL ➖➖➖➖➖➖➖ TVC TC ATC ****** $ MC

Answer rating: 100% (QA)

a L TP MPLTPnTPn1 TVC200L TC1000VC ATCTCTP MCTCnTCn1 0 0 0 1... View the full answer