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?