Question

ABLE #1 represents data for a perfectly competitive firm (assume labor drives the variable costs). Assume the product sells for

$75.00 (and filling out the table with the correct answers for 10 points):

Laborers	Quantity	TFC	TVC	TC	ATC	AVC	AFC	MC	MR	TR	Total Econ Profit
1	5
2	12
3	21
4	31
5	40						$12.50
6	48
7	54		$3,150.00
8	57

a. On the same sheet of paper you are submitting to the Week Eight Big Problem PART TWO Dropbox containing your name and a completed TABLE #1, graph each of the average total cost, average variable cost, and marginal cost curves (13 points), and highlight this firm’s supply curve (2 points) and label the two points on the supply curve we know with absolute certainty (4 points). If the price of the output in TABLE #1 is $75.00 per unit, add this information to your graph (3 points). Make sure you label all relevant components.

Answer 1

The filled table is given below. Formula view is given after the table for better understanding. Explanation is after that.

Laborers	Quantity	TFC	TVC	TC	ATC	AVC	AFC	MC	MR	TR	Total Econ profit
1	5	500	450	950	190	90	100	950	375	375	-575
2	12	500	900	1400	116.67	75.00	41.67	450	525	900	-500
3	21	500	1350	1850	88.10	64.29	23.81	450	675	1575	-275
4	31	500	1800	2300	74.19	58.06	16.13	450	750	2325	25
5	40	500	2250	2750	68.75	56.25	12.50	450	675	3000	250
6	48	500	2700	3200	66.67	56.25	10.42	450	600	3600	400
7	54	500	3150	3650	67.59	58.33	9.26	450	450	4050	400
8	57	500	3600	4100	71.93	63.16	8.77	450	225	4275	175

AFC of one quantity is given. We just need to multiply that with the quantity to get the total fixed cost.
TVC of 7 labors is given. So for one labor it is 3150/7. Then we need to just multiply this with the number of labor
TC is sum of TFC and TVC.
ATC is TC/quantity.
AVC is TVC/quantity
AFC is TFC/quantity
MC is current total cost-previous total cost
MR is Current total revenue-previous total revenue
TR is 75*quantity

Second part is not clear. Please post it separately with clear instructions. Thank you.