Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $60. The average physical product of labor is 30, the last worker added 12 units to total output, and total fixed cost is $3,600a. What is marginal cost?b. What is average variable cost?c. how much output is being producedd. What is the average total cost?d. At the current output rate, is average variable cost increasing, constant, or decreasing? Is average total cost increasing, constant, or decreasing? What about average total cost?

Marginal cost is 60, AVC is 2, output is 600 units, ATC is 8

Explanation:

Marginal cost is 60. (1,200 – 1,140) 1,200 is total cost at the 20 level of labor, and 1,140 is the total cost at 19 level of labor. 20 x 60 = 1,200; 19 x 60 = 1,140

b.What is average variable cost?AVC is 2 (1,200 / 600). 600 is the output. AP of labor = 30 = TP / 20 (30 = 600 / 20)

c.How much output is been produced?Output is 600 units. AP of labor = 30 = TP / 20 (30 = 600 / 20)

d.What is average total cost?ATC is 8 (4,800 / 600 = 8) (TC / Q)

e.Is average variable cost increasing, constant, or decreasing? What about average total cost?AVC is increasing, but ATC is decreasing

a . What is the marginal cost?

Th marginal cost is 60. Which is gotten by (1,200 – 1,140) where 1,200 is total cost at the 20 level of labor, and 1,140 is the total cost at 19 level of labor. 20 x 60 = 1,200; 19 x 60 = 1,140

b. What is average variable cost?

The AVC is 2 which is gotten by (1,200 / 600). 600 is the output. AP of labor = 30 = TP / 20 (30 = 600 / 20)

c. How much output is been produced?

The Output being produced is 600 units. AP of labor = 30 = TP / 20 (30 = 600 / 20)

d. What is average total cost? The ATC is 8 which is gotten by (4,800 / 600 = 8) (TC / e. Is average variable cost increasing, constant, or decreasing? What about average total cost? AVC is increasing (from 1.9 to 2), while ATC is decreasing (from 8.1 to 8)

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