Answer to Question #165785 in Microeconomics for Rahul chauhan

Question

Output (Q) - 1 2 3 4 5 6 7 8 9 10

Capital (K)- 0 2 4 6 8 10 12 14 16 18 20

Labour (L)- 0 5 9 12 15 19 24 30 37 45 54

assuring that the price of labour (pL) is Rs.5 per unit and price of capital (pK) is Rs.10 per unit ,compute and graph TVC MC and AVC for the firm

Answer 1

(Q) - 0 1 2 3 4 5 6 7 8 9 10

(K) - 0 2 4 6 8 10 12 14 16 18 20

(L) - 0 5 9 12 15 19 24 30 37 45 54

(VC) - 0 45 85 120 155 195 240 290 345 405 470

(MC) - - 45 40 35 35 40 45 50 55 60 65

(AVC) - - 45 42.5 40 38.75 39 40 41.43 43.125 45 47