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Total Cost and Marginal Cost Complete the following table, assuming that each unit of labor costs $75 per day.
Quantity of labor/day Output/day Fixed Cost Variable Cost Total Cost Marginal Cost
0 ____ $300 $__ $__ $___1 5 ___ 75 __ 152 11 ___ 150 450 12.53 15 ___ ___ 525 ___4 18 ___ 300 600 255 20 ___ ___ ___ 37.5
Long Run Costs Suppose the firm has only three possible scales of production as shown below:a. Which scale of production is most efficient when Q =65?b. Which scale of production is most efficient when Q = 75?c. Trace out the long-run average cost curve on the diagram
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