Microeconomics
Total Cost and Marginal Cost
Complete the following table, assuming that each unit of labor costs $75 per day.
|
Quantity of Labor
|
Output
|
Fixed
|
Variable
|
Total
|
Marginal
|
|
per Day
|
per Day
|
Cost
|
Cost
|
Cost
|
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
|
a. Correctly construct the table
b. Graph the fixed cost, variable cost, and total cost curves for these data.
c. What is the marginal product of the third unit of labor?
d. What is average total cost when output is 18 units per day?