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The following table shows data from the simple production function used in Question 1. Capital costs this firm $20 per unit, and labor costs $10 per worker.
k l tp
10 0 0
10 1 5
10 2 15
10 3 30
10 4 50
10 5 75
10 6 85
10 7 90
10 8 92
a.) From the information in the table, calculate total fixed cost (TFC), total variable cost (TVC), total cost (TC), average total cost (ATC), and marginal cost (MC).
b.) Graph your results, putting TFC, TVC, and TC on one graph and AFC, AVC, ATC, and MC on another.
c.) At what point is average total cost minimized? At what point is average variable cost minimized?
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