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cmserver-2 - so the marginal productivity of labor in the...

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ECON 101 Shomu Banerjee COST CONCEPTS A business has the following output q and costs as given in the table below, where TC refers to total cost , TFC to total fixed costs , TVC to total variable costs , AFC to average fixed cost , AVC to average variable costs , AC to average cost , and MC to marginal cost . Fill in the blanks. q TC TFC TVC AFC AVC AC MC 0 100 * * * * 1 10 2 130 3 55
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ECON 101 Shomu Banerjee PRODUCTION AND PPFS Suppose a country has 5 units of labor. Each unit of labor can produce 5 units of butter,
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Unformatted text preview: so the marginal productivity of labor in the production of butter is constant. For guns, however, there is decreasing marginal productivity and the production function is given by the following table: L Guns 0 0 1 10 2 17 3 22 4 24 5 25 Draw the production possibility frontier for this country in the graph below. 25 20 15 10 5 20 30 25 15 10 5 Butter Guns...
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This note was uploaded on 10/20/2011 for the course ECON 101 taught by Professor Dezhbakhsh during the Fall '07 term at Emory.

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cmserver-2 - so the marginal productivity of labor in the...

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