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 Using the information provided, calculate the following: APP MPP VC FC TC ATC MC
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 Using the information provided, calculate the following: APP MPP VC FC TC ATC MC
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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 |
- Using the information provided, calculate the following:
- APP
- MPP
- VC
- FC
- TC
- ATC
- MC
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