Determining the avariable cost and total cost curves

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Complete the following table, assuming that each unit of labor costs $75 per day.

Quantity of Labor per day

Output per day

Fixed Cost

Variable Cost

Total Cost

Marginal Cost

0

____

$300

$____

$____

$____

1

5

____

75

____

15

2

11

____

150

450

12.5

3

15

____

____

525

____

4

18

____

300

600

25

5

20

____

____

____

37.5

 

 

 

 

 

 

1. Graph the fixed cost, variable cost and total cost curves for these data.

2. What is the marginal product of the third unit of labor?

3. What is average total cost when output is 18 units per day

Reference no: EM133081675

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