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# Tables and problem solving

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PLEASE REPLY IN TABLE FORMAT FOR THE FIRST SECTION AND EXPLAIN A,B,C,& D.

Complete the following table, where L is units of labor, Q is units of output and MP is the marginal product of labor.

L Q MP TVC STC MC ATC

0 0 \$0 \$12
1 6 3 15
2 15 6
3 21 9
4 24 12
5 26 15

a. At what level of labor input do the marginal returns of labor begin to diminish?

b. What is the average variable cost when Q = 24?

c. What is the firm's fixed costs?

d. What is the wage rate?

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##### Solution Preview

<br>
<br>PLEASE REPLY IN TABLE FORMAT FOR THE FIRST SECTION AND EXPLAIN A,B,C,& D.
<br>
<br>Complete the following table, where L is units of labor, Q is units of output and MP is the marginal product of labor.
<br>
<br>
<br>L Q MP TVC STC MC ATC
<br>0 0 0 0 12 - 12
<br>1 6 6 3 15 3 15/6=2.5
<br>2 15 9 6 18 3 18/15=1.2
<br>3 21 6 9 21 3 21/21=1.0
<br>4 24 3 12 24 3 24/24=1.0
<br>5 26 2 15 27 3 27/26=1.04
<br>(The numbers in bold are inputted, calculations are explained in the following answers)
<br>
<br>a. At what level of labor input do the marginal returns of labor begin to diminish?
<br>
<br>ANSWER: Here, the marginal return of labor means MP of labor in the ...

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