Answer to Question #55100 in Economics for Renee

Question

Production/Cost Exercises
1. The following is a short-run production table for a firm with labor as its only variable input.
Wage = $ 320
Capital = 110
Capital Price= $20
Product Price= $60

Labor Output
0 0
1 50
2 110
3 160
4 200
5 230
6 250
7 260
8 265
9 260
10 250
a. Determine the following measures at all levels of output:
MPL, APL, TFC, TVC, TC, TR, AVC, ATC, AFC, MC, PROFIT
b. At what level of output is the profit maximized?
c. What kind of observations can you make about MC, price, average total cost and profit ?