Question

Consider a firm that has just built a plant, which cost $1,000.

Each worker costs $5.00 per hour.

Based on this information, fill in the table below.

Complete the missing variables.

Number of Worker Hours	Output	Marginal Product	Fixed Cost	Variable Cost	Total Cost	Marginal Cost	Average Variable Cost	Average Total Cost
0	0					--	--	--
50	400
100	900
150	1300
200	1600
250	1800
300	1900
350	1950

Answer 1

Answer - As per given information, a complete table has been given below. In the table marginal cost is calculated by getting a change in total product and dividing it by 50 numbers of workers.

Variable cost = number of workers hour multiplied by each worker cost $5.00.

Total fixed cost is given $1000 which is the cost of plant establishment. Total cost is the summation of total fixed cost and total variable cost.

Average total cost = total cost / output

average variable cost = total variable cost / output

Marginal cost is calculated by getting change and dividing by 50 which id $5.

Number of Worker Hours Marginal Product Average Variable Cost Variable Marginal Average Total Cost Output 50 100 150 200 250 300 350 400 900 1300 1600 1800 1900 1950 Fixed Costl Cost 1000 1000 1000 1000 1000 1000 1000 1000 250 500 750 1000 1250 1500 1750 Total Cost ICost 1000 1250 1500 1750 2000 2250 2500 2750 3.125 5 0.5555556166666667 5 0.57692311.34615385 1.25 1.25 5 0.78947371.31578947 5 0.8974359 1.41025641 0.625 10 6 4 2 0.625 50.6944444