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A producer of hard disk drives for notebook computers currently has a factory with two disk- pressing machines, which it cannot change in the short
A producer of hard disk drives for notebook computers currently has a factory with two disk- pressing machines, which it cannot change in the short run. Each of the machines costs $100 per day. Each hired worker costs $50 per day. The relationship between output and the number of workers is as follows: Workers Total Marginal TFC TVC TC AFC AVC ATC MC Product Product 0 0 10 25 38 48 56 60 62 a. Fill in the columns for total fixed cost (TFC), total variable cost (TVC), total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC). b. Verify that two alternative methods of figuring ATC (TC/Total Product and AVC + AFC) give the same answer (except for rounding). C. Over what range of output are there decreasing marginal costs, increasing marginal costs, increasing returns to labor, and diminishing returns to labor? d. At which level of output is AVC minimized? At which level of output is ATC minimized
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