Economics Homework Solutions
Problem
#4303

cost table with graphs using excel

Using the following demand schedule, calculate total revenue, marginal revenue and own-price elasticity of demand. Then show the relation among marginal revenue, price and elasticity of demand.
       Quantity  Marginal   Elasticity  
Price  Demanded  Revenue    Of Demand  
$60       8
50       16
40       24
30       32
20       40
10       48

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The first two columns in the following table give a firm's short run production function when the only variable input is labor, and capital (the fixed input) is held constant at 5 units. The price of capital is $2,000 per unit, and the price on labor is $500 per unit.

Units   Units                            COST  
of      of      Average   Marginal Fixed Variable Total
Labor   Output  product   product
0       0
20      4,000
40      10,000
60      15,000
80      19,400
100     23,000

     AVERAGE COST         Marginal
Fixed  Variable  Total    cost

a. Complete the table
b. What is the relation between average variable cost and marginal cost? Between erage total cost and marginal cost?
c. What is the relation between average product and average variable cost? Between marginal product and marginal cost?

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