Answer Happy

8. (10 points) Use the information provided to fill in the remaining cells in the tables below. Assume that nominal wage rate, W, is $1, and the implicit rental price of capital goods, r= $1. Note: MPL marginal product of labor, TVC = total variable cost, TFC-total fixed cost, TC = total cost, MC = marginal cost, AVC = average variable cost, AFC = average fixed cost, ATC= average total costs. K L MPL Q TFC TVC= TC MC AVC AFC ATC =rK WL 1 0 1 ATC TFC TVC- TC MC AVC AFC =rK WL 4 1 6 4 Draw the marginal cost curve and the average total cost curve for each table. Explain why these two sets of curves are different 1 1 1 1 1 1 K 1 1 1 1 1 1 2 3 4 5 6 L 012 2 3 4 5 23 2 4 4 2 1 MPL Q 4 4 4 4