The following table shows a firm’s input, output, and costs in the short run. The price of each unit of output is Tk.200. (All costs and prices are in Tk.)Labor Quantity of Variable Total input Output cost cost0 0 0 5001 4 20 5202 8 40 5403 13 60 5604 19 80 5805 26 100 600------------------------------------------------------------------------------------a) What is the AFC of the firm when it employs 1 worker?b) What is the MC of the 2nd worker?c) What is the profit when the firm employs 3 workers?d) What is the MP of the 4th worker?e) Does this firm follow the law of diminishing marginal product/returns, explain. 1. The following table shows a firm's input, output and costs in the short run. The price of each unit of output isTk.200. (All costs and prices are in Tk.)Quantity ofOutputLaborVariableTotalinputcostcost500142052028405403136056041980580526100600a) What is the AFC of the firm when it employs 1 worker?b) What is the MC of the 2nd worker?c) What is the profit when the firm employs 3 workers?d) What is the MP of the 4th worker?e) Does this firm follow the law of diminishing marginal product/returns, explain.

Average fixed cost: AFC Average fixed cost is the cost that incurs with the production of additional…

The following table shows a firm’s input, output, and costs in the short run. The price of each unit of output is Tk.200. (All costs and prices are in Tk.) Labor Quantity of Variable Total input Output cost cost 0 0 0 500 1 4 20 520 2 8 40 540 3 13 60 560 4 19 80 580 5 26 100 600 ------------------------------------------------------------------------------------ a) What is the AFC of the firm when it employs 1 worker? b) What is the MC of the 2nd worker? c) What is the profit when the firm employs 3 workers? d) What is the MP of the 4th worker?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 1SCQ: A firm had sales revenue of 1 million last year. It spent 600,000 on labor, 150,000 on capital and...

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The following table shows a firm’s input, output, and costs in the short run. The price of each unit of output is Tk.200. (All costs and prices are in Tk.)

Labor Quantity of Variable Total

input Output cost cost

0 0 0 500

1 4 20 520

2 8 40 540

3 13 60 560

4 19 80 580

5 26 100 600

------------------------------------------------------------------------------------

a) What is the AFC of the firm when it employs 1 worker?
b) What is the MC of the 2nd worker?
c) What is the profit when the firm employs 3 workers?
d) What is the MP of the 4^th worker?
e) Does this firm follow the law of diminishing marginal product/returns, explain.

1. The following table shows a firm's input, output and costs in the short run. The price of each unit of output is
Tk.200. (All costs and prices are in Tk.)
Quantity of
Output
Labor
Variable
Total
input
cost
cost
500
1
4
20
520
2
8
40
540
3
13
60
560
4
19
80
580
5
26
100
600
a) What is the AFC of the firm when it employs 1 worker?
b) What is the MC of the 2nd worker?
c) What is the profit when the firm employs 3 workers?
d) What is the MP of the 4th worker?
e) Does this firm follow the law of diminishing marginal product/returns, explain.

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