Answer to Question #301277 in Microeconomics for Axis

Question

For an enterprise, each worker gets $50 per day and the constant cost of this

enterprise is $300. Find the Average Product (AP), Marginal Product (MP),

Variable Cost (VC), Total Cost (TC), and Marginal Cost (MC). Show all of your

calculations.

Number of Labor Total Product

0 0

1 3

2 6

3 8

4 10

5 11

Explain each answers please

Answer 1

Average Product=$\frac{Total Product}{Variable Input}$

Marginal Product=$\frac{Change in Product}{Change in Input}$

Variable Cost= Cost per unit ∗ Total number of variable input

Total Cost = Variable Cost $+$ Fixed Cost

Marginal Cost = $\frac{Change in Cost}{Change in Quantity}$