Answer to Question #41333 in Microeconomics for arash

Question #41333
A firm produces the following units of output, Q, by hiring a fixed quantity of capital, K, and labour, L, as follows: Q TPL APL MPL 16 8 0.5 36 16 0.44 0.40 65 24 0.37 0.28 97 32 0.33 0.25 137 40 0.29 0.20 177 48 0.27 0.20 209 56 0.27 0.25 233 64 0.27 0.33 249 72 0.29 0.50 257 80 0.31 1 A: Assuming that the cost of capital is $1,000 and labour costs $10.00 per hour, determine the total variable cost, average variable cost and the marginal cost of the firm for the output levels given above. B: Provide rough graphs of the TVC, AVC and MC curves and compare their behaviour with the product curves in part b. Be sure to label your axes correctly.
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