Question
Consider the following table which describes how a firm uses variable labour input to produce output in the short-run. Suppose each worker is paid $90
Consider the following table which describes how a firm uses variable labour input to produce output in the short-run.
Suppose each worker is paid $90 and each piece of capital is rented for $41. The firms is currently using 2 units of capital.
Hint: it is not required for you to complete every blank or even every column to answer the questions below! Recall what the TAs covered with you in tutorials.
Part (a): What level of output should the firm produce at if their goal is to minimize their average variable cost?
Part (b): Which level of output should the firm produce at if their goal is to minimize their marginal cost?
Part (c): What level of output should the firm produce at if their goal is to minimize their average total cost?
(Table attached : https://we.tl/t-k7Y8hD8Qtj)
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