Question

The short-run relationship between the number of labor units that may be used in the production process and the total output that may be produced per period of time is as shown on the table below:

The short-run relationship between the number of labor units that may be used in the production process and the total output that may be produced per period of time is as sh on the table below: own # of Lab r Units may be used per week: L # of Total Output (# chairs) may be produced per week: q 1-2.o0 2--7.00 3---17.0o 4-- --27.00 5---32.00 6 33.oo 7-33.50 Moreover, the wage rate per unit of labor per unit of time is $1o.oo, the unit cost of raw material is $1.00, the total fixed cost (overhead) is s5.oo and the firm needs one unit of raw material for each unit of output. Now, compute and make tables and graphs for the following: I The eroductivity curves 1. Total outpu t (IS 2. Average Product of labor. 3. Marginal product of labor. 【I. The cost of urves A. Iotal costs 1. Total fixed cost . 2. Total variable cost. 3. Total cost. B. Average costs: 1. Average fixed cost 2. Average variable c。st 3. Average total cost C. The marginal cost ductivity III. Investigate the relationship between the pro and the cost curves.

Answer 1

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Labour unit	output	Average product of labour	marginal product
0	0	0	0
1	2	2	2
2	7	3.5	5
3	17	5.666667	10
4	27	6.75	10
5	32	6.4	5
6	33	5.5	1
7	33.5	4.785714	0.5

20 4- L33r 03 SD ) o x7) ㄧ晹.s- I )>3.ST +33 .sv-t s--

So 5 Cost S. Find cot nes 1 3 S3 3781 1 58 193

output	fixed cost	total cost	Variable cost	A.F.C	A.V.C.	A.T.C	M.C
0	5	5	0	0	0	5	5
2	5	17	12	2.5	6	8.5	12
7	5	32	27	0.714286	3.857143	4.571429	15
17	5	52	47	0.294118	2.764706	3.058824	20
27	5	72	67	0.185185	2.481481	2.666667	20
32	5	87	82	0.15625	2.5625	2.71875	15
33	5	98	93	0.151515	2.818182	2.969697	11
33.5	5	108.5	103.5	0.149254	3.089552	3.238806	10.5

in tha costs curve horizontal line is Output and Vertical line is costs.

Productivity curves Average costs curves 40 35 30 20 15 10 17 27 32 33 33.5 -output --Aver弔e product of labour marginal product M.C 25 20 15 10 0 277 27 32333.5