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A firm spends 1.000 pesos regardless of how much output is produced. Evry worker hired by the firm receives a wage of 1,200 pesos. We also know that: L TP AP MP TFC TVC TC AFC AVC AC MC 0 0                   1 50                   2 104                   3 162                   4 224                   5 282                   6 336                   7 386                   8 432                   9 474                   10 512                   11 546                   12 576                   13 602                   14 624                   15 640                     Where L = quantity of labor; TP = total product of labor, AP = average product of labor; MP = marginal product of labor; TFC = total fixed cost; TVC = total variable cost; TC = total cost; AFC = average fixed cost; AVC = average variable cost; AC = average cost and MC = marginal cost. Fill in all the missing values in the table. You may use a spreadsheet program to compute the values BUT you must provide a step-by-step explanation of how you arrived at the answers. Construct the marginal cost, average cost and average variable cost curves. You may use a computer- generated diagram.

A firm spends 1.000 pesos regardless of how much output is produced. Evry worker hired by the firm receives a wage of 1,200 pesos. We also know that: L TP AP MP TFC TVC TC AFC AVC AC MC 0 0                   1 50                   2 104                   3 162                   4 224                   5 282                   6 336                   7 386                   8 432                   9 474                   10 512                   11 546                   12 576                   13 602                   14 624                   15 640                     Where L = quantity of labor; TP = total product of labor, AP = average product of labor; MP = marginal product of labor; TFC = total fixed cost; TVC = total variable cost; TC = total cost; AFC = average fixed cost; AVC = average variable cost; AC = average cost and MC = marginal cost. Fill in all the missing values in the table. You may use a spreadsheet program to compute the values BUT you must provide a step-by-step explanation of how you arrived at the answers. Construct the marginal cost, average cost and average variable cost curves. You may use a computer- generated diagram.

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter25: The Supply Of And Demand For Productive Resources
Section: Chapter Questions
Problem 9CQ
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Question
  1. A firm spends 1.000 pesos regardless of how much output is produced. Evry worker hired by the firm receives a wage of 1,200 pesos. We also know that:

L

TP

AP

MP

TFC

TVC

TC

AFC

AVC

AC

MC

0

0

 

 

 

 

 

 

 

 

 

1

50

 

 

 

 

 

 

 

 

 

2

104

 

 

 

 

 

 

 

 

 

3

162

 

 

 

 

 

 

 

 

 

4

224

 

 

 

 

 

 

 

 

 

5

282

 

 

 

 

 

 

 

 

 

6

336

 

 

 

 

 

 

 

 

 

7

386

 

 

 

 

 

 

 

 

 

8

432

 

 

 

 

 

 

 

 

 

9

474

 

 

 

 

 

 

 

 

 

10

512

 

 

 

 

 

 

 

 

 

11

546

 

 

 

 

 

 

 

 

 

12

576

 

 

 

 

 

 

 

 

 

13

602

 

 

 

 

 

 

 

 

 

14

624

 

 

 

 

 

 

 

 

 

15

640

 

 

 

 

 

 

 

 

 

 

Where L = quantity of labor; TP = total product of labor, AP = average product of labor; MP = marginal product of labor; TFC = total fixed cost; TVC = total variable cost; TC = total cost; AFC = average fixed cost; AVC = average variable cost; AC = average cost and MC = marginal cost.

  1. Fill in all the missing values in the table. You may use a spreadsheet program to compute the values BUT you must provide a step-by-step explanation of how you arrived at the answers.
  2. Construct the marginal cost, average cost and average variable cost curves. You may use a computer- generated diagram.
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