Complete the following table, where L is units of labor, Q is the rate of output, and MP is the marginal product of labor.
Complete the following table, where L is units of labor, Q is the rate of output, and MP is the marginal product of labor. Answer the questions a-d below with a brief explanation of how you derived each answer. L Q MP VC TC MC ATC 0 0 _____ $0 $120 $ ___ $___ 1 6 _____ 30 150 ___ ___ 2 15 _____ 60 _____ ___ ___ 3 21 _____ 90 _____ ___ ___ 4 24 _____ 120 _____ ___ ___ 5 26 _____ 150 _____ ___ ___ a. At what level of labor input do the marginal returns to labor begin to diminish? b. What is the average variable cost when Q = 24? c. What is this firm’s fixed cost? d. What is the wage rate per day?
Content
Complete the following table, where L is units of labor, Q is the rate of output, and MP is the marginal product of labor. Answer the questions a-d below with a brief explanation of how you derived each answer.
L Q MP VC TC MC ATC
0 0 _____ $0 $120 $ ___ $___
1 6 _____ 30 150 ___ ___
2 15 _____ 60 _____ ___ ___
3 21 _____ 90 _____ ___ ___
4 24 _____ 120 _____ ___ ___
5 26 _____ 150 _____ ___ ___
a. At what level of labor input do the marginal returns to labor begin to diminish?
b. What is the average variable cost when Q = 24?
c. What is this firm’s fixed cost?
d. What is the wage rate per day?
