Toduction - WorkSheet OF TIONAL 1) The following chart represents the production function and cost curves for a firm. Complete the box. The following formulas can be used to calculate the necessary values for the chart. MPP (Marginal Physical Product) = (change in @)(change in L) In this case, labor is the only input that varies and we assume a constant wage. FC (Fixed Cost) = TC- VC VC (Variable Cost) = L*wage AFC (Average Fixed Cost) = FCIQ AVC (Average Variable Cost) = VC/Q ATC (Average Total Cost) = TCIQ or AFC + AVC MC (Marginal Cost) = (change in TC)/(change in () Labor Capital Output MPP FC VC TC AFC AVC ATC MC 0 10 0 1 10 1 36 40 2 10 4 3 2 3 10 9 5 0.8 4 10 12 3 5 10 14 2 56 6 10 15 1 a. At what quantity of output is average total cost at its minimum? b. At what quantity of output is average variable cost at its minimum? c. At what quantity of output is marginal cost at its minimum? d. What must be true about average total cost and marginal cost as long as ATC is decreasing as output increases? Why