Computation of AVC, ATC and MC
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Assume that labor and capital are the only inputs used by a firm. Capital is fixed at $100. (total) and tahtat is sufficient to product up to and including 5 units of production. Workers an be hired for $200. each. Complete the following table to show average AVC, ATC and MC. MC should be shown on a per unit basis.
Quanitity of Labor Total Ouput AVC ATC MC
0 0
1 100
2 250
3 350
4 400
5 425
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This solution helps compute AVC, ATC and MC
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Assume that labor and capital are the only inputs used by a firm. Capital is fixed at $100. (total) and tahtat is sufficient to product up to and ...
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