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

question 128

Essay

(a) Calculate marginal costs, total costs, average fixed costs, average variable costs and average total costs, given the following table. Fixed costs are $100. $$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Output } & \begin{array} { c } \text { Total } \\\text { Variable } \\\text { Cost }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost }\end{array} & \begin{array} { c } \text { Average } \\\text { Fixed } \\\text { Cost }\end{array} & \begin{array} { c } \text { Average } \\\text { Variable } \\\text { Cost }\end{array} & \begin{array} { c } \text { Average } \\\text { Total } \\\text { Cost }\end{array} \\\hline 0 & 0 & & & & & \\\hline 1 & 60 & & & & & \\\hline 2 & 90 & & & & & \\\hline 3 & 110 & & & & & \\\hline 4 & 150 & & & & & \\\hline 5 & 230 & & & & & \\\hline 6 & 450 & & & & & \\\hline 7 & 610 & & & & & \\\hline 8 & 810 & & & & & \\\hline\end{array}$$ (b) Between what levels of output is there increasing marginal productivity?
(c) If labour were the only input to this production process, between what levels of output is the marginal product of labour falling?

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Definitions:

Long Term Liabilities

Obligations or debts that are due to be paid after one year or more, such as bonds payable or long-term loans.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings, used for valuing companies and comparing their financial health.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company's profits and assets.

Tempel Corporation

A specific company, possibly identified by its unique business activities, name, or industry sector. Without further context, detailed attributes cannot be provided.