Use the following information and table to answer the next 4 questions:

A firm combines labor (L) and capital (K) to produce output (Q). The price of one unit of labor is $400 and the price of one unit of capital is $200

This firm is producing in the short run (remember that in the short run there is one fixed resource, in this case, capital).

L	K	Q	TC	TFC	TVC	ATC	AFC	AVC	MC
0	2	0				X	X	X	X
1	2	100
2	2	800
3	2	1,200
4	2	1,500
5	2	1,700
6	2	1,800

QUESTION 2

Given the information and table in Question #1: What is the marginal cost (MC) of the firm when it uses 4 (four) units of labor?

	a.	$0.433
	b.	$1.33
	c.	$1.22
	d.	$1.67

Given the information and table in Question #1: What is the total variable cost (TVC) of the firm when it uses 4 (four) units of labor?

	a.	$1,000
	b.	$1,600
	c.	$800
	d.	$700

Given the information and table in Question #1: What is the total cost (TC) of the firm when it uses 6 (six) units of labor?

	a.	$900
	b.	$1,800
	c.	$2,800
	d.	None of the other choices.