Costs and diminishing marginal returns

Reference no: EM1316045

Use the following Information on a hypothetical short-run production function to answer questions a-c.

Units of Labour/Day	5	6	7	8	9
Units of Output/Day	120	140	155	165	163

The price of labour is $20 per day. Ten units of capital are used each day. Regardless of output level. The price of capital is $50 per unit.

a. Calculate the marginal and average variable product of each unit of labour input.

b. Calculate total, average total, average variable, and marginal cost

c. Where diminishing marginal returns sets?

Reference no: EM1316045

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