ECO 550 The following table shows data for the simple production function used in Question1. Capital costs the firm $20 per unit, and labor costs $10 per worker

ECO 550 The following table shows data for the simple production function used in Question1. Capital costs the firm $20 per unit, and labor costs $10 per worker.

K L TP TFC TVC TC AFC AVC ATC MC

10 0 0
10 1 5
10 2 15
10 3 30
10 4 50
10 5 75
10 6 85
10 7 90
10 8 92

  1. From the information in the table, calculate total fixed cost (TFC), TVC, TC, AFC, AVC, ATC, MC
  2. Graph your results, putting TFC, TVC, and TC on one graph and AFC, AVC, ATC, and MC on another
  3. At what point is average total cost minimized? At what point is average variable cost minimized?

Course: ECO 550 Managerial Economics and Globalization
School: Strayer University

  • : 25/05/2017
  • : 16