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The accompanying table shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. The cost of
The accompanying table shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. The cost of labour is $200 per unit per day and the fixed cost of the capital is $1500 per day. 1 Click the icon to View the table. a. Using the information provided, compute all of the short-run costs for this firm and complete the table. Remember to record the marginal costs between the rows indicating total cost. Complete the third, fourth, and fifth columns of the table. Units of Labour Total Output (per day) (per day) TFC TVC TC MC AFC AVC ATC 5 200 $ |$ |$ | 10 500 $ |$ |$ | 15 1200 $ $ $ 20 1710 $ $ $ 25 1940 $ $ $ 30 2060 $ |$ |$ | 35 2160 $ |$ |$ | Complete the last four columns of the table. Units of Labour Total Output (per day) (per day) TFC TVC TC MC AFC AVC ATC 5 200 $ 10 500 15 1200 20 1710 25 1940 30 2060 EA 35 2160 EA (Round your responses to the nearest cent.)b. Assuming that labour is only hired in increments of 5 units, what is this firm's capacity level of output? per day c. Assuming that labour is only hired in increments of 5 units, at what level of labour employed per day does the firm encounter diminishing marginal productivity of labour? units per day 1: Table Units of Labour Total Output TFC TVC TC MC AFC AVC ATC (per day) (per day) 5 200 10 500 15 1200 20 1710 25 1940 30 2060 35 2160
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