Chapter 7, Problem 8P

To determine

To determine: 

(a)

The point at which the marginal return of labor begins to diminish is to be determined.

Concept Introduction:

Diminishing Marginal Return:

Is defined as the decrease in the marginal output of a production process with an increase in the amount of a single factor of production, while all other factors of production are kept as constant.

To determine

(b)

To determine:

The average variable cost when the quantity is 24 units is to be determined.

To determine

(c)

To determine:

The firm’s fixed cost is to be determined.

To determine

(d)

To determine:

The wage rate per day is to be determined.