Reference no: EM131843203

A = 15,           B = 4,             C =  6,             and      D = 9   

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1. Suppose production is described as Q = 50K + 5KL. Is production increasing returns to scale (IRS), constant returns to scale (CRS) or decreasing returns to scale (DRS)?

2. Given the chart below, what is the average product of labor when _A_ units of labor are employed? 

Labor/day output/day

12 372

13 429

14 476

15 495

16 512

3. Given the chart above, what is the marginal product of labor of the _A_th unit of labor? 

A firm operates in the short run with total fixed costs of $8,000.00 and total variable costs (TVC) related to the quantity of output it produces as is below. Answer the 3 questions below with this information.

Q TVC

0 $0.00

1 $7,500

2 $13,500

3 $17,500

4 $21,000

5 $25,000

6 $29,500

7 $35,000

8 $42,500

9 $50,500

10 $62,200

4. Calculate average variable cost when output is __B___  units.

5. Calculate average total cost when output is _C_ units.

6. What is the marginal cost of the _D ^th__ unit of output.