Question 1)

7. You are told that w = $25/hr, r = $5/hr and K = 20. Fill in the missing information in the following table. L Q APL MPL TFC TVC TC AFC AVC AC MC 0 0 25 IN 45 3 60 A 70 5 75 The following information is provided to you: APL = Q/L AFC = TFC/Q MPL = AQ/AL AVC =TVC/Q TFC = rK AC = AFC + AVC TVC = WL MC = ATC/AQ TC = TFC + TVC Does the data in this table follow the law of diminishing returns? Yes No