In the short run, a firm operates a factory which it leases for $2000 per annum. To increase output, the firm employs increasing amounts of labour at a wage rate of $500 per worker. The table below shows the relationship between the amount of labour employed and the amount of output produced in the factory. Labour Output (TPPP) APP MMP VC FC TC ATC MC 0 0 ____ ___ 0 _ _ 1 15 2 50 3 80 4 100 5 110 6 115 1. Plot the APP and MPP curves on the same graph 2. Plot the ATC and MC curves on the same graph
In the short run, a firm operates a factory which it leases for $2000 per annum. To increase output, the firm employs increasing amounts of labour at a wage rate of $500 per worker. The table below shows the relationship between the amount of labour employed and the amount of output produced in the factory. Labour Output (TPPP) APP MMP VC FC TC ATC MC 0 0 ____ ___ 0 _ _ 1 15 2 50 3 80 4 100 5 110 6 115 1. Plot the APP and MPP curves on the same graph 2. Plot the ATC and MC curves on the same graph
Chapter11: Labor Markets
Section: Chapter Questions
Problem 1SQ
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In the short run, a firm operates a factory which it leases for $2000 per annum. To increase output, the firm employs increasing amounts of labour at a wage rate of $500 per worker. The table below shows the relationship between the amount of labour employed and the amount of output produced in the factory.
Labour |
Output (TPPP) |
APP |
MMP |
VC |
FC |
TC |
|
MC |
0 |
0 |
____ |
___ |
0 |
_ |
_ |
||
1 |
15 |
|||||||
2 |
50 |
|||||||
3 |
80 |
|||||||
4 |
100 |
|||||||
5 |
110 |
|||||||
6 |
115 |
1. Plot the APP and MPP
2. Plot the ATC and MC curves on the same graph
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