(Total Cost and Marginal Cost) Complete the following table, where L is units of labor, Q is units of output, and MPL is the marginal product of labor. L    Q    MPL  VC   TC   MC   ATC 0    0         $0   $12         1    6         $3   15          2    15        $6               3    21        $9               5    26        $15              At what quantity of labor do the marginal returns to labor begin to diminish?

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
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  1. (Total Cost and Marginal Cost) Complete the following table, where L is units of labor, Q is units of output, and MPL is the marginal product of labor.

L    Q    MPL  VC   TC   MC   ATC

0    0         $0   $12        

1    6         $3   15         

2    15        $6              

3    21        $9              

5    26        $15             

  1. At what quantity of labor do the marginal returns to labor begin to diminish?
  2. What is the average variable cost when Q=24?
  3. What is this firm’s fixed cost?
  4. What is the wage rate per day?

 

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