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2. A firm can produce with one or two machines. Table 1 below shows the total product (TP1) of the firm when it produces with
2. A firm can produce with one or two machines. Table 1 below shows the total product (TP1) of the firm when it produces with one machine. Table 2 shows the total product (TP2) of the firm when it produces with two machines. Table 1 Labor 0 MP AP TFC MC AFC AVC ATC TP 10 TVC DO TC ( ( ) ( ) ( ) 1 16 ( ( ) DO ) ) ( ( ) ( 2. 14 ( ( ) ) ) ( DO DO ( ) ( ) 3 18 ) ) DIO ) ( ) DIO ) ( ) ) 20 ( DIO DO ( ( ( 14 Table 2 Labor 0 MP2 AP2 MC2 AFC2 AVC2 ATC2 TP2 0 TFC2 ( TVC2 DO TC2 DO ) ( ) ( 1 13 ( ) ( ) ( DO ( ( ) ( ) 2. 22 ( ( DO DI ) ( ( ( ( ) ( ) 3 27 ( ( ) DO ( ) DIO ( ( ) 4 30 DO ( DO ( Let the wage of each worker and the rent of each machine be $10 and $20, respectively. (a) Complete the tables above (fill the cells with brackets only). (b) Draw in Graph 1 the curves MP, and AP1. (c) Draw in Graph 2 the curves MC1, AVC1, and ATC. (d) Draw in Graph 3 the curves MC1, ATC1, MC2, and ATC2. Output 8 6 4 2 Labor Graph 1 Cost Cost $5 $5 $4 $4 $3 $3 $2 $2 $1 $1 16 20 Output 8 Output Graph 2 20 24 28 32 Graph 3
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