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Assume a firm has access to a production process for plastic pink flamingos where each laborer...

Assume a firm has access to a production process for plastic pink flamingos where each laborer produces 10 flamingos per hour without diminishing. What is the total product? Also calculate the marginal product, and the average product of labor. Suppose the wage rate is $2. What then is the marginal costand the average variable cost?

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the marginal product is output from an extra input and here any addition of the laborers produces 10 flamingos so the MPL=10
the average product=total product/number of labors
total product =sum of marginal products
=number of labors*10
AP=number of labors*10/number of labors
=10
TP=10L
MC=cost of marginal product/marginal product
cost of marginal product=$2
MC=2/10
=0.2
AVC=VC/quantity
VC=MC*MP*L

AVC=VC/total product
AVC=0.2*10L/10L


=$0.2
MP=AP=10
TP=10L
MC=AVC=$0.2

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