Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 7, Problem 7P
b)
To determine
Marginal Product of the third unit of labor
c)
To determine
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(workers)
(boxes/day)
0
0
1
4
2
9
3
16
4
24
5
32
6
39
7
45
8
50
9
54
10
57
11
59
12
60
The cost of labor is $120/worker per day. The cost of capital is $300/day
Plot accurately (use a graphing program) the following diagrams. Please put titles on the
axes.
a. The total product curve.
b. The marginal product and average product curves (on the same diagram). Remember that
marginal product represents a change and should be plotted at the midpoints e.g. the
marginal product of the third worker should be plotted at 2.5 on the labor axis.
c. The total cost curve.
d. The marginal cost, average variable cost and average cost curves (on the same diagram).
Remember that marginal cost represents a change and should be plotted at the midpoints.
Table showing Total Cost and Quantity of Output
Quantity of
Total
Average Total
Marginal Cost
Output
Cost
Cost
$100
1
$120
2
$135
3
$145
4
$160
5
$180
6
$205
7
$240
8
$285
$350
|10
$440
Quantity
(Q)
1
2
3
456700
8
Total
Fixed
Cost
(TFC)
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
Total
Variable
Cost
(TVC)
0.00
17.00
30.00
41.00
48.00
57.00
77.00
81.00
Total
Cost
(TC)
Average Average Average
Fixed
Variable
Total
Cost
Cost
Cost
(AFC)
(AVC)
(ATC)
Marginal
Cost
(MC)
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