The following are the points on a production function. Units of Labor (L) Total Output 0 100 300 (Q) 0 15000 25000 Consider the graph of the marginal product as a function of labor based on the table above. The marginal product from 0 to 100 units of labor would equal units of labor. and would be drawn as line between 0 units of labor and 100 The marginal product from 100 to 300 units of labor would equal 300 units of labor. and would be drawn as line between 100 units of labor and

Would you consider an interest payment on a loan to a film an explicit or implicit cost?

What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?

How do we calculate each of the following: marginal cost, average total cost, and average variable cost?

A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?

What is a long-run average cost curve?

Are fixed costs also sunk costs? Explain.