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Unformatted text preview: variable cost, and the total fixed cost below. 2 (c) Using the data from the table on the first page, graph the average total cost, average variable cost, average fixed cost, and marginal cost below. (d) The point of diminishing returns occurs when total product, or output, is 110 , the amount or labor hours are 2 , the marginal product is 60 , and the marginal cost is .33 . (e) This production function shows ↑ ing then ↓ ing (increasing, diminishing, constant, combination of all three) returns. 1 10 50 100 150 200 250 OUTPUT AT AVC AFC M 100 200 300 400 500 50 100 150 200 250 OUTPUT T TF TV $...
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- Fall '09
- Economics of production, TFC, average variable cost