Relationship between marginal and average cost) assume that labor and capital are the only inputs used by a firm. Capital is fixed at 5 units which cost 100$ Per day. Workers can be hired for 200$ each per day complete the following table to show average variable cost, average total cost, and marginal cost.  labor      Total output    avc       Atm        Mc  0                0                    1                100 2                250 3                350 4                400 5                425

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.