| Technical Problem 12 |
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| Total |
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| Average |
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| __________________________ |
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| _______________________________ |
| Units of |
| Average |
Marginal |
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| Marginal |
| labor |
Output |
Product |
Product |
Fixed |
Variable |
Total |
| Fixed Cost |
Variable Cost |
Total Cost |
Cost |
| 10 |
| 20 |
4,000 |
| 40 |
10,000 |
| 60 |
15,000 |
| 80 |
19,400 |
| 100 |
23,000 |
| Fixed costs are 5 units @ $2,000 per unit |
| Variable costs are $500 per unit |
| Just fill out the table, don't do parts b & c |
| For the spreadsheet above: |
| The first two columns in the table give a firm's short-run production function when the only variable input is labor, and capital (fixed input) is held constant at 5 units. The price of captial is $2,000 per unit, and the price of labor is $500 per unit. |
| a. Complete the table |
| b. What is the relationship between the average variable cost and marginal cost? Between the averae total cost and marginal cost? |
| c. What is the relation between average product and average variable cost? Between marginal product and marginal cost? |
AmazingExpert
technical-problem-12-worksheet.xlsx
