Fill in the missing parts in the following tables to illustrate the behavior of production and costs in the short-run; then determine the optimal level of production according to the number of inputs you are intending to use. Output Units Land Square Meters Capital Egyptian Pounds Labor Units 0 20 40000 0 1000 20 40000 5 1600 20 40000 8 2100 20 40000 11 2500 20 40000 14 2600 20 40000 17 Output FC VC TC MCL MPL AVC AFC ATC 0 1000 1600 2100 2500 2600 -Hint Consider land and capital as fixed factors, while labor units as variable factors. The cost of land is L.E20 per square meter. The interest rate on capital is 10%. The average wages per unit of labor is L.E1500
Fill in the missing parts in the following tables to illustrate the behavior of production and costs in the short-run; then determine the optimal level of production according to the number of inputs you are intending to use. Output Units Land Square Meters Capital Egyptian Pounds Labor Units 0 20 40000 0 1000 20 40000 5 1600 20 40000 8 2100 20 40000 11 2500 20 40000 14 2600 20 40000 17 Output FC VC TC MCL MPL AVC AFC ATC 0 1000 1600 2100 2500 2600 -Hint Consider land and capital as fixed factors, while labor units as variable factors. The cost of land is L.E20 per square meter. The interest rate on capital is 10%. The average wages per unit of labor is L.E1500
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Fill in the missing parts in the following tables to illustrate the behavior of production and costs in the short-run; then determine the optimal level of production according to the number of inputs you are intending to use.
|
Output Units |
Land Square Meters |
Capital Egyptian Pounds |
Labor Units |
|
0 |
20 |
40000 |
0 |
|
1000 |
20 |
40000 |
5 |
|
1600 |
20 |
40000 |
8 |
|
2100 |
20 |
40000 |
11 |
|
2500 |
20 |
40000 |
14 |
|
2600 |
20 |
40000 |
17 |
|
Output |
FC |
VC |
TC |
MCL |
MPL |
|
AFC |
|
|
0 |
|
|
|
|
|
|
|
|
|
1000 |
|
|
|
|
|
|
|
|
|
1600 |
|
|
|
|
|
|
|
|
|
2100 |
|
|
|
|
|
|
|
|
|
2500 |
|
|
|
|
|
|
|
|
|
2600 |
|
|
|
|
|
|
|
|
- -Hint
- Consider land and capital as fixed factors, while labor units as variable factors.
- The cost of land is L.E20 per square meter.
- The interest rate on capital is 10%.
- The average wages per unit of labor is L.E1500.
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