Question: The first two columns in the following table give a firm's short-run production function when the only variable input is labour capital (the fixed input)

The first two columns in the following table give a firm's short-run production function when the only variable input is labour capital (the fixed input) is held constant at 5 units. The price of capital is 2000 per unit and the price of labour is 500 per unit. Labour Production curves (units of output) TP AP Cost () Average cost () MP Fixed Variable Total Fixed Variable Total MC () 20 40 60 80 100 0 4.000 10.000 15.000 19,400 23.000 C Finish attem a) Complete the table (show how you derived your answers). b) What is the relation between average variable cost (AVC) and marginal cost (MC)? Between average total cost (ATC) and marginal cost (MC)? Draw an appropriate graph to support your answer. c) What is the relation between average product (AP) and average variable cost (AVC? Between marginal product (MP) and marginal cost (MC)? Draw an appropriate graph to support your answer.

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