Question: N3 Q 2 Fill in the missing values in the table below for a firm in the short run and show your working for

N3 Q 2 Fill in the missing values in the table below for a firm in the short run and show your working for

N3 Q 2 Fill in the missing values in the table below for a firm in the short run and show your working for each of the values. TC ? 172 VC ? ? AFC 25 ? MC 50 ? AVC ? ? ATC 60 ? (ii) Based on the table in part (i) above, determine whether the marginal product of labour increases, decreases, or stays the same as output expands from 2 to 3 units. Explain your answer. Part (c) A firm's production technology is represented by strictly convex isoquants. At the input combination H with coordinates (L1, K1), the firm's marginal product of labour, MPL, is 30 while the firm's marginal product of capital, MPK, is 45 and the associated total cost is represented diagrammatically below.

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A TC ATC Q At Q2 ATC60 So TC602120 AVCATCAFC602535 VCAVCQ35270 At Q3 ATCTCQ17235733 MC17212052 V... View full answer

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