You are given the following short-run information for an individual firm. Labor (L) is the only...

Transcribed Image Text:

You are given the following short-run information for an individual firm. Labor (L) is the only variable input. The price of labor is $200/week. Fixed costs are $100/week. Complete the rest of the table. Describe the relationship between the MP and MC. At which output level does the law of diminishing 1. returns set in? Total Labor product МС TVC $ МP ТЕC ТC 0 1 20 55 3 100 4 150 5 200 6 230 7 250 8 263 9 270 10 275 11 278 12. 280 You are given the following short-run information for an individual firm. Labor (L) is the only variable input. The price of labor is $200/week. Fixed costs are $100/week. Complete the rest of the table. Describe the relationship between the MP and MC. At which output level does the law of diminishing 1. returns set in? Total Labor product МС TVC $ МP ТЕC ТC 0 1 20 55 3 100 4 150 5 200 6 230 7 250 8 263 9 270 10 275 11 278 12. 280