Use the following information to answer questions 1-15
Consider a firm that daily rents machinery for the cost of $1100 and employs workers at the cost of $50 for a full day of work. The following table describes the production function of the firm. Fill the table such that you can make some production decisions for this firm.
|
Units of Labor
|
Units of Production
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Fixed Costs
|
Variable Costs
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Total Costs
|
Average Variable Costs
|
Average Total Costs
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Marginal Cost
|
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1
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11.00
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|
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2
|
16.55
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|
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|
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3
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19.79
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|
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|
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4
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22.09
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5
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23.88
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|
|
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6
|
25.33
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|
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|
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7
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26.57
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8
|
27.64
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|
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9
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28.58
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10
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29.42
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|
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11
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30.18
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12
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30.88
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13
|
31.52
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|
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|
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14
|
32.11
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|
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15
|
32.66
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|
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|
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QUESTION 1: What is the level of production when 10 units of labor are employed?
QUESTION 2: What is the fixed cost of production when 10 units of labor are employed?
QUESTION 3: What is the variable cost of production when 10 units of labor are employed?
QUESTION 4: What is the total cost of production when 10 units of labor are employed?
QUESTION 5: What is the average variable cost of production when 10 units of labor are employed?
QUESTION 6: What is the average total cost of production when 10 units of labor are employed?
QUESTION 7: What is the marginal cost of production when 10 units of labor are employed?
QUESTION 8: What is the minimum amount of workers needed to be employed if the firm were to produce 24 units of the good?
QUESTION 9: At what approximate level of production is the marginal cost of production equal to the average total cost?
QUESTION 10: What would be the firm's level of production if the price of the good was $60?
QUESTION 11: What would be the firm's profits at equilibrium if the price of the good was $78?
QUESTION 12: What would be the price of the good if the firm is employing 8 workers at equilibrium?
QUESTION 13: What would be the profit of the firm if the firm is employing 8 workers at equilibrium?
QUESTION 14: What would be the price of the good if the firm is employing 9 workers at equilibrium?
QUESTION 15: What would be the profit of the firm if the firm is employing 9 workers at equilibrium?