Question

Consider a firm that has just built a plant, which cost $1,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below.

Number of Worker Hours	Output	Marginal Product	Fixed Cost	Variable Cost	Total Cost	Marginal Cost	Average Variable Cost	Average Total Cost
0	0					--	--	--
50	400
100	900
150	1300
200	1600
250	1800
300	1900
350	1950

Answer 1

From the above question

Fixed cost is given $1000 as this cost will remain the same at every output.

Also, each worker cost $5

Number of Worker Hours	Output	Marginal product	Fixed Cost	Variable Cost	Total Cost	Marginal Cost	Average Variable Cost	Average Total Cost
0	0	--				--	--	--
50	400	8	1000	250	1250	3.125	0.625	3.125
100	900	10	1000	500	1500	0.5	0.555	1.666
150	1300	8	1000	750	1750	0.625	0.576	1.346
200	1600	6	1000	1000	2000	0.833	0.625	1.25
250	1800	4	1000	1250	2250	1.25	0.694	1.25
300	1900	2	1000	1500	2500	2.5	0.789	1.315
350	1950	1	1000	1750	2750	5	0.897	1.410

So the above table is solved now let's see how each and every missing value is calculated.

Marginal Product

Marginal product refers to a change in total product or output when one more unit of a variable factor is employed.

MP = Change in output / Change in the number of worker hours

Change in output	Change in the number of worker hours	Marginal Product
400	50	8
500	50	10
400	50	8
300	50	6
200	50	4
100	50	2
50	50	1

Fixed Cost is given in the question which is $1000 and it will remain the same at every output.

Variable Cost

Variable cost is that cost which varies directly with the level of output. For eg in this question with the increase in output more hours will be needed by the workers.

Variable cost = Numbers of hours x Per hour labor cost

Numbers of hours	Per hour labor cost	Variable Cost
50	5	250
100	5	500
150	5	750
200	5	1000
250	5	1250
300	5	1500
350	5	1750

Total Cost

Total Cost = Fixed Cost + Variable Cost

Variable Cost	Fixed Cost	Total Cost
250	1000	1250
500	1000	1500
750	1000	1750
1000	1000	2000
1250	1000	2250
1500	1000	2500
1750	1000	2750

Marginal Cost

Marginal Cost = Change in total cost / Change in output

Change in total cost	Change in output	Marginal Cost
1250	400	3.125
250	500	0.5
250	400	0.625
250	300	8.333
250	200	1.25
250	100	2.5
250	50	5

Average Variable Cost

Average Variable Cost = Variable Cost / Output

Variable Cost	Output	Average Variable Cost
250	400	0.625
500	900	0.555
750	1300	0.576
1000	1600	0.625
1250	1800	0.694
1500	1900	0.789
1750	1950	0.897

Average Total Cost

Average Total Cost = Total Cost / Output

Total Cost	Output	Average Total Cost
1250	400	3.125
1500	900	1.666
1750	1300	1.346
2000	1600	1.25
2250	1800	1.25
2500	1900	1315
2750	1950	1.410