1) Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below.
Number of
Worker Hours
Output
Marginal Product
Fixed
Cost
Variable
Cost
Total
Cost
Marginal
Cost Average
Variable
Cost Average
Total
Cost
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
... Hence, the increase in ESS is 4.5-0=4.5. We fill in the 4.5 in the table below. ... Hence, the increase in ESS is 18-0=18. We fill in the 18 in the table below. ...
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