Question
I need help to solve this problem. The following table shows a firm's input, output and costs in the short run . The price of
I need help to solve this problem.
The following table shows a firm's input, output and costs in the short run. The price of each unit of output is
Tk. 100. (All costs and prices are in Tk.)
LaborQty ofVariableTotal
inputOutputcostcost
000400
1630420
21260440
31890460
422120480
524150500
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a) What is the AFC of the firm when it employs 1 worker?
b) What is the MC of the 2nd worker?
c) What is the profit this firm makes when it employs 3 workers?
d) What is the MP of the 4th worker?
e) Does this firm follow the law of diminishing marginal product, explain?
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