Question
You are given the following short-run information for an individual firm. Labor (L) is the only variable input. The price of labor is $200/week. Total
You are given the following short-run information for an individual firm. Labor (L) is the only variable input. The price of labor is $200/week. Total Fixed costs are $1000/week.
a. Complete the rest of the table.
b. What pattern can you see from the column of marginal product of labor? How might you explain it?
c. Draw the MPL and MC curves respectively. Describe the relationship between the MPL and MC.
Labor L 012MTS67 3 4 5 Total product 0 0 20 50 90 120 140 150 155 MPL TVC TC ATC ****** $ MC
Step by Step Solution
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Step: 1
a L TP MPLTPnTPn1 TVC200L TC1000VC ATCTCTP MCTCnTCn1 0 0 0 1...
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
