The following graph shows the marginal and average product curves for labor, the firm's only variable input.
Question:
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,000. Fixed cost is $120,000
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a.At what output does the firm reach minimum average variable cost?
b.What is AVC at its minimum?
c.When the firm uses 60 units of labor, how much output does it produce?
d.When the firm uses 60 units of labor, what is AVC at this level of output?
e.When the firm uses 100 units of labor, what is marginal cost at this level of output?
f.When the firm uses 60 units of labor, what is average total cost at this output?
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aAVC is inversely related to AP ie when AP increases AVC decreases When AP is maximum AVC attains ...View the full answer
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