Suppose labor (L) and capital (K) are perfect substitute inputs. Each additional hour of labor increases output by one unit, and each additional hour of capital increases production by 2 units. Workers are paid a wage rate (w) of $20/hour, and capital costs a rate of $50/hour. In the short-run, capital is fixed at 2.

a. Mathematically derive and graphically depict Karen’s MPL and APL curves (on the same graph).

b. Mathematically derive and graphically depict Aisling’s TC and VC curves (on the same graph).

c. Mathematically derive and graphically depict Aisling’s MC, and AVC curves (on the same graph).

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a To derive and graphically depict Karens MPL Marginal Product of Labor and APL Average Product of L... View the full answer