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Part IV Production and cost function: With the following short-run exercise from Hall, Robert, Marc Lieberman. (2005). Microeconomics: Principles and applications. 3rd ed. Thomson. Page
Part IV Production and cost function: With the following short-run exercise from Hall, Robert, Marc Lieberman. (2005). Microeconomics: Principles and applications. 3rd ed. Thomson. Page 207. Cleanabrillo is a competitor of Lavacoches Comonuevo that is dedicated to washing vehicles. It uses labor (variable input) and capital (automated line for washing vehicles: fixed input). Labor cost: $50 per worker per day and capital cost: $75. Please calculate the costs and production that appear in the table and below: Average Product (PP) Marginal Product (MP) Variable Cost (CV) Fixed Cost (CF) Total Cost (TC) Average Cost (CP) Average Variable Cost (AVC) Average Fixed Cost (CFP) Marginal Cost (MC) Labor (L) Capital Production Vehicles washed per day (Q) 0 $75 0 1 $75 30 2 $75 70 3 $75 120 4 $75 160 5 $75 190 6 $75 210
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