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Complete the following table, where L is units of labor, Q is the rate of output, and MP is the marginal product of labor.

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Complete the following table, where L is units of labor, Q is the rate of output, and MP is the marginal product of labor. Answer the questions a-d below with a brief explanation of how you derived each answer. L Q MP VC TC MC ATC 0 0 _____ \$0 \$120 \$ ___ \$___ 1 6 _____ 30 150 ___ ___ 2 15 _____ 60 _____ ___ ___ 3 21 _____ 90 _____ ___ ___ 4 24 _____ 120 _____ ___ ___ 5 26 _____ 150 _____ ___ ___ a. At what level of labor input do the marginal returns to labor begin to diminish? b. What is the average variable cost when Q = 24? c. What is this firm’s fixed cost? d. What is the wage rate per day?

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Complete the following table, where L is units of labor, Q is the rate of output, and MP is the marginal product of labor. Answer the questions a-d below with a brief explanation of how you derived each answer. L Q MP VC TC MC ATC 0 0 _____ \$0 \$120 \$ ___ \$___ 1 6 _____ 30 150 ___ ___ 2 15 _____ 60 _____ ___ ___ 3 21 _____ 90 _____ ___ ___ 4 24 _____ 120 _____ ___ ___ 5 26 _____ 150 _____ ___ ___ a. At what level of labor input do the marginal returns to labor begin to diminish? b. What is the average variable cost when Q = 24? c. What is this firm’s fixed cost? d. What is the wage rate per day?

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