Question

Use the following information to answer questions 1-15.

Consider a firm that daily rents machinery for the cost of $1000 and employs workers at the cost of $100 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	Fixed Costs	Variable Costs	Total Costs	Average Variable Costs	Average Total Costs	Marginal Cost
1	11.00
2	16.24
3	19.89
4	22.48
5	24.48
6	26.13
7	27.51
8	28.71
9	29.78
10	30.72
11	31.58
12	32.36
13	33.08
14	33.75
15	34.37

1. What is the level of production when 10 units of labor are employed?

2. What is the fixed cost of production when 10 units of labor are employed?

3. What is the variable cost of production when 10 units of labor are employed?

4. What is the total cost of production when 10 units of labor are employed?

5. What is the average variable cost of production when 10 units of labor are employed?

6. What is the average total cost of production when 10 units of labor are employed?

7. What is the marginal cost of production when 10 units of labor are employed?

8. What is the minimum amount of workers needed to be employed if the firm were to produce 24 units of the good?

9. At what approximate level of production is the marginal cost of production equal to the average total cost?

10. What would be the firm’s level of production if the price of the good was $60?

11. What would be the firm’s profits at equilibrium if the price of the good was $60?

12. What would be the price of the good if the firm is employing 8 workers at equilibrium?

13. What would be the profit of the firm if the firm is employing 8 workers at equilibrium?

14. What would be the price of the good if the firm is employing 9 workers at equilibrium?

15. What would be the profit of the firm if the firm is employing 9 workers at equilibrium?

Answer 1

#Please rate positively...thank you