Economics Homework Solutions
Problem
#1991

Problem solving and graphing

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

L        Q        TFC        TVC        STC        MC
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

Attached file(s):
Attachments
problem set 3 #3.txt  View File

Attachment Content Summary (Note: view attachment at the above link before purchasing. Actual attachment content may vary slightly from that shown below.)

problem set 3 #3.txt



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

L Q TFC TVC STC MC
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?

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.

Solution
What is this?
By OTA - Overall OTA Rating
Monwar Rahman, MSS, MBA  - 4.9/5
Purchase Cost Now
$2.19 CAD (was ~$11.97)
Included in Download
  • Plain text response
  • Attached file(s):
    • BrainMass-OTA Service2 (1991).doc
$2.19 Instant Download
Add to Cart
Why you can trust BrainMass.com
  • Your Information is Secure
  • Best Online Academic Help Service
  • Students find real academic Success
Related Solutions
  • Finding Cost Functions - A Firm has total cost function given by the following: TC = 10000 + 7*Q - 100*Q2 + 2*Q3 Its marginal cost function is given by: MC = 7 - 200*Q + 6*Q2. a) Write down the following cost funct ...
  • Cost Functions - Which of the following statements is correct concerning the relationships among the firm's total cost functions? A) TC = TFC - TVC B) TVC = TFC - TC C) TFC = TC - TVC D) TC = TVC - T ...
  • Johnson Inc. is notified that local property taxes have increased. - Johnson Inc. is notified that local property taxes have increased. Johnson's economist states this will increase our cost of production and shift up our average total cost curve, average variable cos ...
  • Calculating TFC,TVC, AVC, MTC for given cost function - 3. Economists estimated the following cost function for X Corporation C = 50 + 16 Q - 2 Q² + 0.2 Q³ C = Total Cost Q = Quantity produced per period a. Plot the TFC, TFC and TC for the values ...
  • Production Costs etc... AVC AFC Output - This problem is concerning the following outputs: AVC/ATC/AFC/TVC Outputs at various units: for example 6000 units (See attached file for full problem description) --- What are the following va ...
Browse