(2) Suppose a firm employs labor as its only variable input. All workers are paid P100 per day. Output per day and variable cost are shown in Table A below. Complete the table, showing labor, average variable cost, and marginal cost for the first eight units of output. Draw a graph showing average and marginal cost. Table A a 1 2 3 4 5 6 7 8 VC 100 400 600 800 1200 1600 2400 3200 L AVC MC
(2) Suppose a firm employs labor as its only variable input. All workers are paid P100 per day. Output per day and variable cost are shown in Table A below. Complete the table, showing labor, average variable cost, and marginal cost for the first eight units of output. Draw a graph showing average and marginal cost. Table A a 1 2 3 4 5 6 7 8 VC 100 400 600 800 1200 1600 2400 3200 L AVC MC
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.3P
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