PLEASE ANSWER ONLY QUESTION C AND D.In the short run, a firm operates a factory which it leases for $2000 per annum. To increase output, the firm employs increasing amounts of labour at a wage rate of $500 per worker. The table below shows the relationship between the amount of labour employed and the amount of output produced in the factory. LabourOutput(TPPP)APPMMPVCFCTCATCMC00 _______0 __115 250 380 4100 5110 6115 Using the information provided, calculate the following: APPMPPVCFCTCATCMC a.Plot the APP and MPP curves on the same graph b.Plot the ATC and MC curves on the same graph c.With the aid of a diagram, explain the relationship between ‘marginal cost’ and ‘average total cost’ d.With the aid of a diagram, explain the relationship between ‘marginal cost curve’, ‘supply curve’ and the ‘average variable cost curve PLEASE ANSWER ONLY QUESTION C AND D.

There are three different types of cost-variable, fixed and marginal. Variable cost is the cost…

c.With the aid of a diagram, explain the relationship between ‘marginal cost’ and ‘average total cost’ d.With the aid of a diagram, explain the relationship between ‘marginal cost curve’, ‘supply curve’ and the ‘average variable cost curve PLEASE ANSWER ONLY QUESTION C AND D.

c.With the aid of a diagram, explain the relationship between ‘marginal cost’ and ‘average total cost’ d.With the aid of a diagram, explain the relationship between ‘marginal cost curve’, ‘supply curve’ and the ‘average variable cost curve PLEASE ANSWER ONLY QUESTION C AND D.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.5CE

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Question

PLEASE ANSWER ONLY QUESTION C AND D.

In the short run, a firm operates a factory which it leases for $2000 per annum. To increase output, the firm employs increasing amounts of labour at a wage rate of $500 per worker. The table below shows the relationship between the amount of labour employed and the amount of output produced in the factory.

Labour	Output (TPPP)	APP	MMP	VC	FC	TC	ATC	MC
0	0	____	___	0			_	_
1	15
2	50
3	80
4	100
5	110
6	115

Using the information provided, calculate the following:

a.Plot the APP and MPP curves on the same graph

b.Plot the ATC and MC curves on the same graph

c.With the aid of a diagram, explain the relationship between ‘marginal cost’ and ‘average total cost’

d.With the aid of a diagram, explain the relationship between ‘marginal cost curve’, ‘supply curve’ and the ‘average variable cost curve

PLEASE ANSWER ONLY QUESTION C AND D.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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