Question

A firm produces its output using only labor. Each unit of labor costs $150. a. Complete the following table. When appropriate, round to two decimal places

Units of Labor	Total Product	Average Product of Labor	Marginal Product of Labor	Variable Cost	Average Variable Cost	Marginal Cost
0	0	--	--	--	--	--
1	150
2		200
3			230
4	800
5			150

Answer 1

Units of Labor	Total Product	Average Product of Labor	Marginal Product of Labor	Variable Cost	Average Variable Cost	Marginal Cost
0	0	--	--	0	--	--
1	150	150	150	150	1	1
2	400	200	250	300	0.75	0.6
3	630	210	230	450	0.71428571	0.65217
4	800	200	170	600	0.75	0.88235
5	950	190	150	750	0.78947368	1

Total product:

entry 3
APL*units of labor=200*2=400
entry 4
TPn-1+MPn=400+230=630
entry 6
TPn-1+MPn=800+150=950

Average Product of Labor
entry 2
TP/Units of Labor=150/1=150
Similarly
entry 4
630/3=210
entry 5
800/4=200
entry 6
950/5=190

Marginal Product of Labor=TPn-TPn-1
Variable Cost=150*Units of Labor
Average Variable Cost=Variable Cost/Total Product
Marginal Cost=Change in Variable Cost//Change in output
(we know that here FC=0
TC=FC+VC
TC=VC
MC=Change in Total Cost/Change in output or
MC=Change in Variable Cost/Change in output)