The accompanying table shows the total daily output for a firm producing specialty cakes and...
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The accompanying table shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. The cost of labour is $50 per unit per day and the fixed cost of the capital is $1500 per day. Click the icon to view the table. III. a. Using the information provided, compute all of the short-run costs for this firm and complete the table. Remember to record the marginal costs between the rows indicating total cost. Complete the third, fourth, and fifth columns of the table. Units of Labour Total Output (per day) (per day) TFC TVC TC MC AFC AVC ATC 5 100 $ $ $ 10 400 $ $ 15 1100 $ 20 1640 $ $ 25 1860 $ 30 1940 $ $ 35 1980 $ $ b. Assuming that labour is only hired in increments of 5 units, what is this firm's capacity level of output? c. Assuming that labour is only hired in increments of 5 units, at what level of labour employed per day does the firm encounter diminishing marginal productivity of labour
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