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

The first two columns in the following table give a firm's short-run production function 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. a. Complete the table. . b. What is the relation between average variable cost and marginal cost? Between average total cost and marginal cost? c. What is the relation between average product and average variable cost? Between marginal product and marginal cost? Cost Average cost Units of Units of Average Marginal Margina labor output product product Fixed Variable Total Fixed Variable Total cost 0 0 XX XX XX XX XX XX 20 4,000 40 10,000 60 15,000 80 19,400 11 11 11 11 100 23,000 1 1 1
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