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Use the following information on a hypothetical short-run production function to answer questionsa and b below. Units of Labour/Day 56789 Units of Output/Day 120140155165168 The

Use the following information on a hypothetical short-run production function to answer questionsa and b below.

Units of Labour/Day56789

Units of Output/Day120140155165168

The price of labour is $20 per unit of labour, perday. Ten units of capital are used each day, regardless of output level. The price of capital is $50 per unit.

a. Calculate the marginal and average product of each unit of labour input.Next, calculate total, average total, average variable, and marginal costs.

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