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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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question B
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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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