Fill in the missing parts in the following tables to illustrate the behavior of production and costs in the short-run; then determine the optimal level of production according to the number of inputs you are intending to use. OutputUnitsLandSquare MetersCapitalEgyptian PoundsLaborUnits 0 1000 1600 2100 2500 2600 OutputFCVCTCMCLMPLAVCAFCATC0 1000 1600 2100 2500 2600 -HintConsider land and capital as fixed factors, while labor units as variable factors.The cost of land is L.E20 per square meter.The interest rate on capital is 10%.The average wages per unit of labor is L.E1500.

Capital is a fixed factor. A fixed amount is assumed to be invested, the interest on which is 10%…

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Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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Question

Fill in the missing parts in the following tables to illustrate the behavior of production and costs in the short-run; then determine the optimal level of production according to the number of inputs you are intending to use.

Output Units	Land Square Meters	Capital Egyptian Pounds	Labor Units
0
1000
1600
2100
2500
2600

Output	FC	VC	TC	MC_L	MP_L	AVC	AFC	ATC
0
1000
1600
2100
2500
2600

-Hint

Consider land and capital as fixed factors, while labor units as variable factors.
The cost of land is L.E20 per square meter.
The interest rate on capital is 10%.
The average wages per unit of labor is L.E1500.

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