1Consider the information in the attached file The marginal

1.Consider the information in the attached file. The marginal cost of producing the 5th unit is ?dollars.

2.Consider the information in the attached file. The average variable cost (AVC) of producing 5 units equals ?dollars.

3.Consider the information in the attached file. The average total cost (ATC) of producing 5 units is ? dollars.

The following table shows the quantities of output produced by a firm and the amount of labor required to produce those quantities. The wage rate is $40 per worker and the fixed cost of production is FC = $4,000. QuantityLabor of Output Required 0 0 30 50 60 80 120 190 2 4. 5

Solution

1.

Total cost of producing 4 units = 4000+40*80= 7200

Total cost of producing 5 units = 4000+40*120= 8800

marginal cost of producing the 5th unit = Total cost of producing 5 units - Total cost of producing 4 units

=8800-7200 = 1600

2.

Total variable cost for 5 units producing = 40*120 = 4800

average variable cost (AVC) = 4800 / 5 = 960

3.

Total cost of producing 5 units = 4000+40*120= 8800

average total cost (ATC) = 8800/5 = 1760