20 40 Output L* K* LTC LAC LMC 0 25 20 800 50 15 16 75 33 20 20 100 31 2 300 125 78 150 66 175 140 44 32 6 440 The price of labour is $20 per unit and the price of capital is $40 per unit. To produce 50 units of output the firm needs to hire units of labour. The 75th unit of output adds $ to long-run total cost. The Long Run Average Cost of producing 125 units of output is $ The Long Run Total Cost of producing 150 units of output is $ To produce 175 units of output the firm needs to hire units of capital