- Solve Problem 12, Page: 306, Chapter 8.

- Draw: Total Cost, Total Variable Cost, Total Fixed Cost, and Average Fixed Cost.

- Draw: Total Product, Marginal product and Average product. Show relations between them.

- Draw: Average Total Cost, Average Variable cost, and Marginal Cost. Show relations between them.

total cost? 12. The first two columns in the following table give a firm's short-run production func- tion when the only variable input is labor, and capital (the fixed input) is held constant at 5 units. The price of capital is $2,000 per unit, and the price of labor is $500 per unit. Units of Average Marginal Cost Average cost Marginal output product product Fixed Variable Total Fixed Variable Total cost 0 4,000 10,000 Units of labor 0 20 XX XX XX XOX XX XX 40 60 80 15,000 19,400 23,000 100 a. Complete the table b. What is the relation between average variable cost and marginal cost? Between av- erage total cost and marginal cost? c. What is the relation between average product and average variable cost? Between marginal product and marginal cost