(A) Calculate Marginal Costs, Total Costs, Average Fixed Costs, Average

question 7

Essay

(a) Calculate marginal costs, total costs, average fixed costs, average variable costs and average total costs, given the following table. Costs are $100 when there is no production. Round off to the nearest whole number.
$$\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Output } & \begin{array} { l } \text { Variable } \\\text { Cost }\end{array} & \begin{array} { l } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { l } \text { Total } \\\text { Cost }\end{array} & \begin{array} { l } \text { Average } \\\text { Fixed } \\\text { Cost }\end{array} & \begin{array} { l } \text { Average } \\\text { Variable } \\\text { Cost }\end{array} & \begin{array} { l } \text { Average } \\\text { Total } \\\text { Cost }\end{array} \\\hline 0 & 0 & 0 & & & & \\\hline 1 & 60 & 60 & & & & \\\hline 2 & 90 & 30 & & & & \\\hline 3 & 110 & 20 & & & & \\\hline 4 & 150 & 40 & & & & \\\hline 5 & 230 & 80 & & & & \\\hline 6 & 350 & 120 & & & & \\\hline 7 & 510 & 160 & & & & \\\hline 8 & 710 & 200 & & & & \\\hline\end{array}$$ (b) Between what levels of output is there increasing marginal productivity?
(c) If labor were the only input to this production process, between what levels of output is the marginal product of labor falling?

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A system that encompasses both technological and social elements, focusing on the interplay between technological advancements and social structures.

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Individuals who take part in an activity or event.

Network Effect

The phenomenon whereby a product or service gains additional value as more people use it, enhancing its utility and attraction.

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The shared or group intelligence that emerges from the collaboration, collective efforts, and competition of many individuals and appears in consensus decision making.