The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume that the wage per unit of labour is $10 and the cost of the capital is $50.

Labour per period

Total output per period

0

0

1

10

2

30

3

90

4

132

5

150

Refer to the above Table, answer the following questions:

a.What is the marginal product of the 4th unit of labour hired by the firm?

Answer:

b.What is the total output per period when this firm is employing labour such that the marginal product of labour is at its maximum?

Answer:

c.What is the average fixed cost for 150 units of output?

Answer

d.What is the average variable cost for 132 units of output?

Answer

e.What is the average total cost for 90 units of output?

Answer