Use this graph to answer all questions. Suppose labor costs $20 per unit and capital costs $30 per unit. Slun it Quantity Question 20 5 pts If the rm produces 100 units, what is xed cost? S Question 21 5 pts If the rm produces 100 units, how many units of capital is the rm using. S Question 22 5 pts If the rm produces 100 units, how many units of labor is the rm using? Question 23 5 pts Suppose the rm wants to produce 101 units of the good. What is Total Cost if the rm produces 101 units? S Question 24 5 pts Suppose the rm wants to produce 101 units of the good. What is the Variable Cost if the rm produces 101 units? : Question 25 5 pts Suppose the rm wants to produce 101 units of the good. What is Average Variable Cost if the rm produces 101 units? Question 26 5 pts Suppose the rm wants to produce 101 units of the good. What is the Average Total Cost if the rm produces 101 units? : Capital (K) is the fixed input and cannot be varied in the short run. In the long run, the firm can increase or decrease the amount of capital used. The cost of capital per unit used is P. and the money spent of capital is Fixed Cost (FC). Labor (L) is the variable input and can be varied in the short and long run. The cost of labor per unit used is P, and the money spent on labor is Variable Cost (VC). Quantity (Q) is the amount of the good the firm produces. We can compute the measures of Total Cost using the formulas: Total Cost = Variable Cost + Fixed Cost Total Cost=TC=K'PK+L'PL Variable Cost=VC=L'PL Fixed Cost FC=K*PKFormulas Total Cost Measures: Where: TC = FC + VC TC=total cost FC=fixed cost TC=PKK + PLL VC=variable cost PR=price of capital PL=price of labor Unit Cost Measures: K= units of capital used L=units of labor used ATC = AFC + AVC Q=quantity produced TC=total cost TC FC VC FC=fixed cost + 0 Q 0 VC=variable cost TC PK * K " PL * L ATC=average total cost = + 0 AVC=average variable cost Q AFC=average fixed cost MC=marginal cost MC= ATC A