A firm spends 1.000 pesos regardless of how much output is produced. Evry worker hired by the firm receives a wage of 1,200 pesos. We also know that: L TP AP MP TFC TVC TC AFC AVC AC MC 0 0 1 50 2 104 3 162 4 224 5 282 6 336 7 386 8 432 9 474 10 512 11 546 12 576 13 602 14 624 15 640 Where L = quantity of labor; TP = total product of labor, AP = average product of labor; MP = marginal product of labor; TFC = total fixed cost; TVC = total variable cost; TC = total cost; AFC = average fixed cost; AVC = average variable cost; AC = average cost and MC = marginal cost. Fill in all the missing values in the table. You may use a spreadsheet program to compute the values BUT you must provide a step-by-step explanation of how you arrived at the answers. Construct the marginal cost, average cost and average variable cost curves. You may use a computer- generated diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm spends 1.000 pesos regardless of how much output is produced. Evry worker hired by the firm receives a wage of 1,200 pesos. We also know that:

L	TP	AP	MP	TFC	TVC	TC	AFC	AVC	AC	MC
0	0
1	50
2	104
3	162
4	224
5	282
6	336
7	386
8	432
9	474
10	512
11	546
12	576
13	602
14	624
15	640

Where L = quantity of labor; TP = total product of labor, AP = average product of labor; MP = marginal product of labor; TFC = total fixed cost; TVC = total variable cost; TC = total cost; AFC = average fixed cost; AVC = average variable cost; AC = average cost and MC = marginal cost.

Fill in all the missing values in the table. You may use a spreadsheet program to compute the values BUT you must provide a step-by-step explanation of how you arrived at the answers.
Construct the marginal cost, average cost and average variable cost curves. You may use a computer- generated diagram.

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