Pageof 3Compute the long-run costs in the following table. The price per unit of capitalis $50 and per unit of labor is $30. (1)(2)(3)(4)Long- Run Long- Run(5)(6)Long- RunOutput Capital Labor Total Cost Average Cost Marginal Cost208.12401520602535804050

Given: Price per unit of capital=$50 Price per unit of labor=$30 The durable goods that are being…

Answered: Compute the long-run costs in the…

Business

Economics

Compute the long-run costs in the following table. The price per unit of capital is $50 and per unit of labor is $30,

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.4: Costs Of Production: Total, Average, Marginal

Problem 3ST

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Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

Question

Page
of 3
Compute the long-run costs in the following table. The price per unit of capital
is $50 and per unit of labor is $30.

(1)
(2)
(3)
(4)
Long- Run Long- Run
(5)
(6)
Long- Run
Output Capital Labor Total Cost Average Cost Marginal Cost
20
8.
12
40
15
20
60
25
35
80
40
50

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