Question

Lauren owns a factory that produces softball gloves. The table below represents her factories productivity and costs when various numbers of workers are hired.

Graphically illustrate her total, marginal and average product curves as well as her marginal and average variable cost curves. Show where the inflection point lies, where production is maximized and what number of workers corresponds to the highest average and marginal product as well as the lowest average variable and marginal cost.

TPL - Total Product Labor
MPL - Marginal Product Labor
APL - Average Product Labor
FC - Fixed Cost
VC - Variable Cost
TC - Total Cost
AFC - Average Fixed Cost
AVC - Average Variable Cost
ATC - Average Total Cost
MC - Marginal Cost

Answer 1

No of workers	TPL	MPL	APL	FC	VC	TC	AFC	AVC	ATC	MC
0	0		0	500	0	500				0
1	7	7	7.00	500	300	800	71.43	42.86	114.29	42.86
2	18	11	9.00	500	600	1100	27.78	33.33	61.11	27.27
3	33	15	11.00	500	900	1400	15.15	27.27	42.42	20.00
4	46	13	11.50	500	1200	1700	10.87	26.09	36.96	23.08
5	55	9	11.00	500	1500	2000	9.09	27.27	36.36	33.33
6	60	5	10.00	500	1800	2300	8.33	30.00	38.33	60.00
7	63	3	9.00	500	2100	2600	7.94	33.33	41.27	100.00
8	65	2	8.13	500	2400	2900	7.69	36.92	44.62	150.00
9	66	1	7.33	500	2700	3200	7.58	40.91	48.48	300.00
10	66	0	6.60	500	3000	3500	7.58	45.45	53.03
11	64	-2	5.82	500	3300	3800	7.81	51.56	59.38
12	60	-4	5.00	500	3600	4100	8.33	60.00	68.33

70 60 50 40 30 20 10 0 TPL int ofinflexion APL 10 Units of Labor 350 300 250 200 150 100 50 AVC MC 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Units of Labor

Highest average product is at workers = 5

Highest marginal product is at workers = 3

Lowest average variable cost is at workers = 4

Lowest marginal cost is at workers = 3