Firm per unit of production

Output. FirmA. FirmB

10. 7. 12

20. 5. 8.60

30. 4.20. 6.50

40. 4. 5.20

50. 4.30. 4.30

60. 4.60. 3.70

70. 5. 3.20

80. 6. 2.80

90. 7.20. 2.50

100. 10. 3

1 what is meant by the optimum level of output and what is this level?

2.with labor intensive method

3.with capital intensive method

4 what level of output would it pay the firm to switch from labor intensive to capital intensive method of production

What does average cost with method b at first fall more quickly than with method a

If a business person was producing these goods using firstly method a, what factors would he take into account in considering whether or not to change to method b