Tables and problem solving

PLEASE REPLY IN TABLE FORMAT FOR THE FIRST SECTION AND EXPLAIN A,B,C,& D.

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

L Q MP TVC STC MC ATC

0 0 $0 $12
1 6 3 15
2 15 6
3 21 9
4 24 12
5 26 15

a. At what level of labor input do the marginal returns of labor begin to diminish?

b. What is the average variable cost when Q = 24?

c. What is the firm's fixed costs?

d. What is the wage rate?

See attatched file for a copy of this question.

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/economics/macroeconomics/tables-and-problem-solving-1u6
Attachments

Solution Preview

...rd column of the table. And, the MP of labor means the extra unit of output produced by using an extra unit of labor. That is how the 3rd column is filled by the differences between 0 & 0, 0 & 6, 6 & 15 and so on. So, from 0 to 1, added an extra unit of labor. As a result, the extra product produced (MP) is from 0 to 6 units. This 6 unit is the MP of labor at the usage level of 1. In the same way, from labor level of 1 to 2, the extra product is reaching from 6 to 15, which means the MP is the difference between 6 and 15 = 9. Now, at the 3rd level of labor usage, the MP of labor starts diminishing or declining, from 9 to 6. So, this is the level of labor input do the marginal ...