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HW_ch10 - (d Which units of labor does this production...

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Homework Question for Chapter 10 1. Given the production function and cost information below answer the following ques- tions: The is \$1680 per week, the firm must employ 2 units of capital, K=2, and the rental rate for capital is \$11,760 per week. L Q 0 0 1 10 2 50 3 150 4 300 5 420 6 480 7 490 8 480 (a) Calculate the Marginal Product of Labor and Marginal Cost. (b) Calculate the Variable Cost and Total Cost. (c) Calculate the Average Variable and Average Total Cost.
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Unformatted text preview: (d) Which units of labor does this production function exhibit increasing, decreasing and constant returns? (e) What additional information would be needed to ﬁnd the long-run cost curves for this ﬁrm? (f) Demonstrate that the marginal costs for the ﬁrm calculated using only the MP L cuve and wage information are the same as those calculated using only the Variable cost curve....
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