Question

2. Use the data underlying the following two tables: The top table shows this data in production form; the bottom table assumes that capital costs $100/unit and labor costs $100/unit. Please fill in the tables, showing your formulas

Labor	Capital	Output	Average Product of Labor	Marginal Product of Labor
0	10	0	-----	-----
1	10	30
2	10	80
3	10	140
4	10	190
5	10	230
6	10	260
7	10	280

Show Your Formulas!

Output	Fixed Costs	Variable Costs	Total Costs	ATC	AVC	MC
0	$1000	0		-----	-----	-----
30	$1000	$200
80	$1000	$400
140	$1000	$600
190	$1000	$800
230	$1000	$1000
260	$1000	$1200
280	$1000	$1400

Answer 1

Answer 2 : Table 1 :

Labour	Output	APl=Q/Labour	MPl= change in Q/ change in labour
0	0	-	-
1	30	30/1=30	30-0/1-0=30
2	80	80/2=40	80-30/2-1 =50
3	140	140/3=47	140-80/3-2 =60
4	190	190/4=48	190-140/4-3 =50
5	230	230/5 =46	230-190/5-4 =40
6	260	260/6= 44	260-230/6-5 =30
7	280	280/7= 40	280-260/7-6 = 20

Table 2 :

Output	FC	VC	TC= FC+ VC	ATC= TC/Q	AVC= VC/Q	MC = TCn+1- TC n
0	1000	0	1000	-	-	-
30	1000	200	1200	40	6.66	200
80	1000	400	1400	17.5	5	200
140	1000	600	1600	11.42	4.28	200
190	1000	800	1800	9.47	4.21	200
230	1000	1000	2000	8.69	4.34	200
260	1000	1200	2200	8.46	4.61	200
280	1000	1400	2400	8.57	5	200