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Costing in Microeconomics

Complete the following table, assuming that each unit of labor below costs $75 per day.

0 0 $300 $ $ $
1 5 75 15
2 11 150 450 12.5
3 15 525
4 18 300 600 25
5 20 37.5

a. Graph the fixed cost, variable cost total cost curves for these data.

b. What is the marginal product of going from two to three units of labor?

c. What is the average total cost when output is 18 units per day?

See attatched file. Please fill in table and complete questions with equations


Solution Summary

The solution completes the table provided in the question related to TFC, TVC, STC and MC. The solution does a superb job of explaining and calculating the different missing components. The solution first graphs the fixed cost, variable cost and total cost curves in a word document. Excellent graphs have been used which are also easy to understand. The solution then calculates the marginal product and the average total cost. The solution is easy to understand as well.