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In the short run, a firm operates a factory which it leases for $2000 per annum. To increase output, the firm employs increasing amounts of labour  at a wage rate of $500 per worker. The table below shows the relationship between the amount of labour employed and the amount of output produced in the factory.   Labour Output (TPPP) APP MMP VC FC TC ATC MC 0 0   ____ ___ 0     _ _ 1 15               2 50               3 80               4 100               5 110               6 115   1. Plot the APP and MPP curves on the same graph 2. Plot the ATC and MC curves on the same graph

In the short run, a firm operates a factory which it leases for $2000 per annum. To increase output, the firm employs increasing amounts of labour  at a wage rate of $500 per worker. The table below shows the relationship between the amount of labour employed and the amount of output produced in the factory.   Labour Output (TPPP) APP MMP VC FC TC ATC MC 0 0   ____ ___ 0     _ _ 1 15               2 50               3 80               4 100               5 110               6 115   1. Plot the APP and MPP curves on the same graph 2. Plot the ATC and MC curves on the same graph

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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  In the short run, a firm operates a factory which it leases for $2000 per annum. To increase output, the firm employs increasing amounts of labour  at a wage rate of $500 per worker. The table below shows the relationship between the amount of labour employed and the amount of output produced in the factory.

 

Labour

Output

(TPPP)

APP

MMP

VC

FC

TC

ATC

MC

0

0

  ____

___

0

    

_

_

1

15

              

2

50

              

3

80

              

4

100

              

5

110

              

6

115

  

1. Plot the APP and MPP curves on the same graph

2. Plot the ATC and MC curves on the same graph

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