Explore BrainMass
Share

Explore BrainMass

    Calculating AP, MP, AVC, TC, FC, MC, TC and ATC

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    See attached file for complete details.

    Problem 1

    Number Of Workers Output
    0 0
    1 50
    2 110
    3 300
    4 450
    5 590
    6 665
    7 700
    8 725
    9 710
    10 705

    The table above shows the weekly relationship between output and number of workers for a factory with a fixed size of plant. Using Excel,
    a. Calculate the marginal product of labor.
    b. Calculate the average product of labor.
    c. At what point do diminishing returns set in?

    Problem 2

    Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information and using Excel, fill in the missing information in the table below.

    Number of Worker Hours Output Marginal Product Fixed Cost Variable Cost Total Cost MC AVC ATC
    0 0 -- 20,000 -- -- --
    50 400 20,250
    100 900 20,500
    150 1300 20,750
    200 1600 21,000
    250 1800 21,250
    300 1900 21,500
    350 1950 21,750

    © BrainMass Inc. brainmass.com October 9, 2019, 10:35 pm ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/calculating-ap-mp-avc-tc-fc-mc-tc-and-atc-225499

    Attachments

    Solution Preview

    Please refer attached file for better clarity of tables and formulas.
    Solution 1

    Number Of Workers Output Average Product of labor Marginal Product of labor
    0 0
    1 50 50.0 50.0
    2 110 55.0 60.0
    3 300 100.0 190.0
    4 450 112.5 150.0
    5 590 118.0 140.0
    6 665 110.8 ...

    Solution Summary

    Solution describes the steps and formulas for calculating maginal product, average product, variable cost, total cost, average variable cost and average total costs based upon given information.

    $2.19