Consider the three figures to the right. If the firm were to employ an 8th unit of labor at the wage of $1,000 per worker per week, its total product would rise to 385 units of output from 360 units of output. What would be the resulting values of the average variable cost and the marginal cost? Average variable cost would be $ per unit of output and marginal cost would be $ per unit of output. (Enter your responses rounded to one decimal place.)
Consider the three figures to the right. If the firm were to employ an 8th unit of labor at the wage of $1,000 per worker per week, its total product would rise to 385 units of output from 360 units of output. What would be the resulting values of the average variable cost and the marginal cost? Average variable cost would be $ per unit of output and marginal cost would be $ per unit of output. (Enter your responses rounded to one decimal place.)
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 15P
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Transcribed Image Text:Consider the three figures to the right. If the firm were to employ an 8th unit of labor at the wage of $1,000
per worker per week, its total product would rise to 385 units of output from 360 units of output. What would
be the resulting values of the average variable cost and the marginal cost?
Average variable cost would be $ per unit of output and marginal cost would be $ per unit of output.
(Enter your responses rounded to one decimal place.)
Total Product (units)
400-
350-
300-
250-
200-
150-
100-
50-
0
Marginal and Average Physical Product (units per worker-we
8 8 8 8 8 9
80-
70-
60-
50-
10-
Labor Input (worker-weeks)
Labor Input (worker-weeks)
TP
APP
MPP
Q
Q
Q
✔
Transcribed Image Text:Average and Marginal Costs ($ per unit)
36-
34
32-
30-
26-
24-
20-
18-
14-
12-
10-
50
100 150 200 250
Output (units)
300
MCP
AVC
350 400
Q
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