Suppose a firm is hiring 20 workers at a wage rate of $60. The average product of labor is 30, the last worker added 12 units of output, and total fixed cost is $3,600.

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If rounding is required, round your answer to the whole number (i.e., do not show the decimal places). Enter the numerical value only, do not enter any symbols ($, €, %, etc.).

(a) The average total cost is $ ? .

(b) The marginal cost of the last unit produced is $ ? .

For the following cost function, find minimum ATC and minimum AVC.

  TC = 18,000 + Q + 0.2 Q2

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If rounding is required, round your answer to the whole number (i.e., do not show the decimal places). Enter the numerical value only, do not enter any symbols ($, €, %, etc.).

Minimum ATC = $ .      300?

Minimum AVC = $ .      61?

The following table shows the total output (units) produced with various levels of labor and each of two levels of capital:

Labor (units)          1          2        3        4

Capital = 2 units    20       50      70      80

Capital = 4 units    40      100   140 160

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If rounding is required, round your answer to the whole number (i.e., do not show the decimal places). Enter the numerical value only, do not enter any symbols ($, €, %, etc.).

When capital is fixed at 2 units,

(a) AP decreases after the  (enter first, second, third, fourth) unit of labor;

(b) MP decreases after the  (enter first, second, third, fourth) unit of labor;

(c) at L = 4, AP = ?  units and MP = ? units;

(d) Assume the wage rate of labor is $200. As labor is increased from 1 to 2 units, AVC  (enter rises, falls) from $ ? to $ ?.

Q = K1/2L1/2

w = $2, r = $2

The firm would like to know the maximum output that can be produced for $8,000. Find the combination of inputs that maximizes output for a cost of $8,000, the amount of output that can be produced, and identify the expansion path.

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(a) The expansion path is ?  (enter the equation of the expansion path in the form K = f(L)).

For (b), if rounding is required, round your answer to the whole number (i.e., do not show the decimal places). Enter the numerical value only, do not enter any symbols ($, €, %,etc.).

(b) The combination of inputs that maximizes output for a cost of $8,000 is: K ? =  units and L = ? units, and the amount of output that can be produced is ? units.