Question: Suppose the output ( q ) produced by different amounts of labour ( L ) hired by a firm is given below: L: 0 1

Suppose the output (q) produced by different amounts of labour (L) hired by a firm is given below:

L: 0 1 2 3 4 5 6

Q: 0 3 9 18 24 27 28

Assume the firm has fixed costs equal to $192 and that each unit of labour costs $36. For each of the 7 possible output levels calculate fixed cost (FC), variable cost (VC), and total cost (TC). Show your full calculations for the output level q =24. Graph the FC, VC, and TC curves.

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