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he first two columns in the following table give a firm's short-run roduction function when the only variable input is labor, and capital he fixed input) is held constant at 5 units. The price of capital is $2,000 er unit, and the price of labor is $500 per unit. - Complete the table What is the relation between average variable cost and marginal cost? etween average total cost and marginal cost?

he first two columns in the following table give a firm's short-run roduction function when the only variable input is labor, and capital he fixed input) is held constant at 5 units. The price of capital is $2,000 er unit, and the price of labor is $500 per unit. - Complete the table What is the relation between average variable cost and marginal cost? etween average total cost and marginal cost?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Instructions: Answer to the best of your ability. Show all of your work, the details, on this excel tab. The first two columns in the following table give a firm's short-run production function when the only variable input is labor, and capital (the fixed input) is held constant at 5 units. The price of capital is $2,000 per unit, and the price of labor is $500 per unit. Costs Average cost Units of Units of Average Marginal Marginal labor output Product Product Fixed Variable Total Fixed Variable Total cost XX XX XX XX XX XX a. Complete the table 20 4000 40 10000 b. What is the relation between average variable cost and marginal cost? Between average total cost and marginal cost? 60 15000 80 19400 100 23000
Transcribed Image Text:Instructions: Answer to the best of your ability. Show all of your work, the details, on this excel tab. The first two columns in the following table give a firm's short-run production function when the only variable input is labor, and capital (the fixed input) is held constant at 5 units. The price of capital is $2,000 per unit, and the price of labor is $500 per unit. Costs Average cost Units of Units of Average Marginal Marginal labor output Product Product Fixed Variable Total Fixed Variable Total cost XX XX XX XX XX XX a. Complete the table 20 4000 40 10000 b. What is the relation between average variable cost and marginal cost? Between average total cost and marginal cost? 60 15000 80 19400 100 23000
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