3a. You are given this short-runweekly production schedule for afirm. Labor (L) is the only variableinput. The price of labor is $200/week. Fixed costs are $500/week.Complete the rest of the table.b. Describe the relationshipbetween the MP and MC.L3456TP or Q0205585110125130MPTVCTFCTCMC 4. a. Label axes & sketch a typical setof AFC, AVC, ATC & MC in properrelation to each other. Don't graphthe numbers from question 3.b. Pick a level of output and shadein area representing total costs atthat level of output.5. Look back at Question 3. If Fixed costs increase to $300 per week then:AFCAVCATCMCshifts (up/down/ not at all)shifts (up/down / not at all)shifts (up/down/ not at all)Creditshifts (up/down/ not at all)

Total Cost: Total cost refers to the cost which includes fixed costs that do not change with the…

3a. You are given this short-run weekly production schedule for a firm. Labor (L) is the only variable input. The price of labor is $200/ week. Fixed costs are $500/week. Complete the rest of the table. relationship b. Describe the between the MP and MC.

3a. You are given this short-run weekly production schedule for a firm. Labor (L) is the only variable input. The price of labor is $200/ week. Fixed costs are $500/week. Complete the rest of the table. relationship b. Describe the between the MP and MC.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3a. You are given this short-run
weekly production schedule for a
firm. Labor (L) is the only variable
input. The price of labor is $200/
week. Fixed costs are $500/week.
Complete the rest of the table.
b. Describe the relationship
between the MP and MC.
L
3
4
5
6
TP or Q
0
20
55
85
110
125
130
MP
TVC
TFC
TC
MC

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