Question
Assume that fixed costs are $50, labor is the only variable input and its costs are reflected completely in the costs below. Complete the table
Assume that fixed costs are $50, labor is the only variable input and its costs are reflected completely in the costs below.
- Complete the table
- Graph AFC, AVC, ATC, and MC
- Explain how increasing returns and decreasing returns are depicted in your graph
- If the labor input increased by $10 at every unit of production, what would be the effect on your graphs?
Total Product | Total Fixed Cost | Total variable cost | Total Cost | Average fixed cost | Average variable cost | Average Total Cost | Marginal Cost |
0 | 0 | ||||||
1 | 25 | ||||||
2 | 45 | ||||||
3 | 60 | ||||||
4 | 70 | ||||||
5 | 85 | ||||||
6 | 105 | ||||||
7 | 135 | ||||||
8 | 180 | ||||||
9 | 240 | ||||||
10 | 315 | ||||||
Step by Step Solution
3.52 Rating (162 Votes )
There are 3 Steps involved in it
Step: 1
Completing the table Output Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Economics
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
18th edition
978-0077413798, 0-07-336880-6, 77413792, 978-0-07-33688, 978-0073375694
Students also viewed these Economics questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App