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Microeconomics
Total Cost and Marginal Cost
Complete the following table, assuming that each unit of labor costs $75 per day.
Quantity of Labor
Output
Fixed
Variable
Total
Marginal
per Day
Cost
0
$___
$300
$____
1
5
___
75
15
2
11
150
450
12.5
3
525
4
18
300
600
25
20
37.5
a. Correctly construct the table
b. Graph the fixed cost, variable cost, and total cost curves for these data.
c. What is the marginal product of the third unit of labor?
d. What is average total cost when output is 18 units per day?
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