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The Artis Company hires employees at a wage rate of $10/hour. Other relevant data about the Artis Company is shown in the table below. What
The Artis Company hires employees at a wage rate of $10/hour. Other relevant data about the Artis Company is shown in the table below.
- What are the firm's fixed costs? (1 mark)
- Fill in the table by calculating the marginal product, total costs, marginal costs and average costs at each quantity of employee hours (round off to 2 decimals if needed) (8 marks)
- Is the data in the table for the short-run or long-run? Explain. (2 marks)
employee hours | output | marginal product | total costs | marginal costs | average costs |
0 | 0 | 100 | |||
2 | 20 | ||||
4 | 50 | ||||
6 | 90 | ||||
8 | 80 | ||||
10 | 60 |
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