Reference no: EM1392421

For the table given

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

a. Complete the table

b. What is the relationship between the average variable cost and marginal cost? Between the averae total cost and marginal cost?

c. What is the relation between average product and average variable cost? Between marginal product and marginal cost?

					Total
				__________________________
Units of		Average	Marginal
labor	Output	Product	Product	Fixed	Variable	Total
10
20	4,000
40	10,000
60	15,000
80	19,400
100	23,000

			Average
		_______________________________
Units of					Marginal
labor	Output	Fixed Cost	Variable Cost	Total Cost	Cost
10
20	4,000
40	10,000
60	15,000
80	19,400
100	23,000

Fixed costs are 5 units @ $2,000 per unit
Variable costs are $500 per unit
Just fill out the table, don't do parts b & c