The following table shows the capital and labor requirements for 10 different levels of production. Assuming that the price of labor (P, ) is $5 per unit and the price of capital (Px) is $9 per unit, compute and graph total cost, marginal cost, and average cost for the firm. To do this, fill in the total cost for each output level in the table below. (Enter your responses as whole numbers.) b. TC 1 20 20 7 3 20 10 20 13 20 17 6 20 23 7 20 31 8 20 41 Units of output 9 20 53 10 20 67 Cost per unit ($)

Suppose that the Acme Gumball Company has a fixed proportions production function that requires it to use two gumball presses and one worker to produce 1,000 gumballs per hour. a. Explain why the cost per hour of producing 1,000 gumballs is 2v + w (where v is the hourly rent for gumball presses and w is the hourly wage). b. Assume Acme can produce any number of gumballs they want using this technology. Explain why the cost function in this case would be TC = q(2v +w), where q is output of gumballs per hour, measured in thousands of gumballs. c. What is the average and marginal cost of gumball production (again, measure output in thousands of gumballs)? (show the complete formula) Draw the graph for the average and marginal cost curves for gumballs assuming v=3, w-5 (show working) Now draw the graph for these curves for  v=6, w=5.( show working) Explain why these curves have shifted.

can you explain the solution for part b like for example how did they get M=y^2/2 and L=2y^2

Calculate total costs at 4 units of output.  Do not put a dollar sign in your answer.  (The 6 columns are Quantity, Total Fixed Cost, Total Variable Cost, Total Cost, Average Total Cost, and Marginal Cost.  The Quantity and Total Variable Cost columns have been filled in along with the first row for Total Fixed Cost.  Average Total Costs and Marginal Costs are not calculated at a quantity of 0.) Quantity Total Fixed Cost Total Variable Cost Total Cost Average Total Cost Marginal Cost 0 15 0   XXXXX XXXXX 1   25       2   40       3   50       4   55       5   65       Calculate average total costs at 2 units of output.   Calculate average total cost at 5 units of output.   Calculate marginal cost at 4 units of output (moving from 3 units to 4 units).   Can you tell if this is the short run or long run?    Can you tell at which level of output profits will be maximized?