What is atc and how many units of labor does the firm use

Reference no: EM13221261

Consider a firm producing 12,500 units of a good where the price of capital is $5 per unit and the price of labor is $10 per unit.

If the firm uses 10,000 units of capital and AVC is $5, what is ATC and how many units of labor does the firm use?

When the firm increases output to 25,000 units, MC is $2. What is TC, VC, AVC, ATC at 25,000 units of output?

Reference no: EM13221261

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