**Production Function (CH7)****Name:____________________**The production function demonstrates the relationship (a mathematical equation) between the amount of inputs and the amount of output produced. Using the following table (for one month of production), calculate and fill all the missing values based on the information below.| Units of the Variable Factor (L) | Total Product (Y) | Marginal Product of Labor (MPL) | Fixed Costs (FC) | Variable Costs (VC) | Total Costs (TC) | Average Fixed Costs (AFC) | Average Variable Costs (AVC) | Average Total Costs (ATC) | Marginal Costs (MC) ||----------------------------------|-------------------|---------------------------------|------------------|--------------------|-----------------|--------------------------|----------------------|-----------------------|-------------------|| 0 | 0 | | 200 | | | | | | || 1 | 20 | | | 250 | | | | | || 2 | 70 | | | | | | | | 50/50= || 3 | 150 | | | | 350 | | | | || 4 | 250 | | | 250 | | | | | || 5 | 400 | | | | | | | | || 6 | 500 | | | | 800 | | | | 200/100= || 7 | 580 | | | | 900 | | | | || 8 | 630 | | | | | | | | 500/50= || 9 | 650 | | | | 2000 | | | | || 10 | 660 | | | | | | | | 600/20= |**Explanation:**- The table outlines a production function scenario where each row represents different levels of labor input (Units of the

Name: Production Function (CH7) Name: The production function shows the relationship (a mathematical equation) between the amount of inputs and the amount of output produced. Given the…
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MPL=∆Y∆LTC=FC+VCFC=TC-VCVC=TC-FCAFC=FCYAVC=VCYATC=TCYMC=∆TC∆YFixed Cost remains fixed at all levels of Output. At 0 level of output VC=0 L Y MPL FC VC TC AFC AVC AC MC 0 0 0 200 0 200+0=200 - - - - 1 20 20 200 250-200=50 250 200/20=10 50/20=2.5 250/20=12.5 50/20=2.5 2 70 50 200 300-200=100 250+50=300 200/70=2.85 100/70=1.43 300/70=4.28 50/50=1 3 150 80 200 350-200=150 350 200/150=1.33 150/150=1 350/150=2.33 50/80=0.625 4 250 100 200 250 200+250=450 200/250=0.8 250/250=1 450/250=1.8 100/100=1 5 400 150 200 400 800-200=600 200/400=0.5 400/400=1 600/400=1.5 150/150=1 6 500 100 200 800-200=600 800 200/500=0.4 600/500=1.2 800/500=1.6 200/100=2 7 580 80 200 900 900+200=1100 200/580=0.35 900/580=1.55 1100/580=1.90 300/80=3.75 8 630 50 200 100-200=1400 1100+500=1600 200/630=0.32 1400/630=2.22 1600/630=2.54 500/50=10 9 650 20 200 2000 2000+200=2200 200/650=0.31 2000/650=3.08 2200/650=3.39 600/20=30 10 660 10 200 - - - - - - Note: As no information is given for the last row we cannot compute answers for last row

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Production Function (CH7) Name: The production function shows the relationship (a mathematical equation) between the amount of inputs and the amount of output produced. Given the following table (for one month of production), calculate and fill all the missing values based on the information below. Marginal Fixed Variable Costs Average Marginal Total Units of Total Total Average Fixed Average Variable the Product Product Costs Costs Costs Variable (Y) of Labor (FC) (VC) (ТC) Costs Costs Costs (MC) Factor (MPL) (AFC) (AVC) (АTC) (L) 200 1 20 250 2 70 50/50= 3 150 350 4 250 250 400 6. 500 800 200/100= 7 580 900 8 630 500/50= 9. 650 2000 600/20= 10 660

Production Function (CH7) Name: The production function shows the relationship (a mathematical equation) between the amount of inputs and the amount of output produced. Given the following table (for one month of production), calculate and fill all the missing values based on the information below. Marginal Fixed Variable Costs Average Marginal Total Units of Total Total Average Fixed Average Variable the Product Product Costs Costs Costs Variable (Y) of Labor (FC) (VC) (ТC) Costs Costs Costs (MC) Factor (MPL) (AFC) (AVC) (АTC) (L) 200 1 20 250 2 70 50/50= 3 150 350 4 250 250 400 6. 500 800 200/100= 7 580 900 8 630 500/50= 9. 650 2000 600/20= 10 660

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Marginal Product Average Product of Labor Units of Total Labor Product of Labor 4 16 5 6. 120 30
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