Question One B) Cost out-put relationship. Step 1: Use the following formulas to complete the table: TC = TFC…

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Question One B) Cost out-put relationship. Step 1: Use the following formulas to complete the table: TC = TFC + TVC, AVC = TVC / Q, AFC = TFC / Q, AC = TC / Q or AFC + AVC, MC = ΔTC / ΔQ or ΔTVC / ΔQ.

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Question One B) Cost out-put relationship Step 1: Use the following formulas to complete the table: Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC); Average Variable Cost (AVC) = TVC / Quantity (Q); Average Fixed Cost (AFC) = TFC / Q; Average Cost (AC) = TC / Q or AFC + AVC; Marginal Cost (MC) = Δ TCΔ Q or Δ TVCΔ Q Step 2: Calculate the values for each column and row. Unit of output (Q) — Total Fixed Cost (TFC) — Total Variable Cost (TVC) — Total Cost (TC) — Average Variable Cost (AVC) — Average Fixed Cost (AFC) — Average Cost (AC) — Marginal Cost (MC)0 — 60 — 0 — 60 — - — - — - — - 1 — 60 — 20 — 80 — 20 — 60 — 80 — 20 2 — 60 — 36 — 96 — 18 — 30 — 48 — 16 3 — 60 — 48 — 108 — 16 — 20 — 36 — 12 4 — 60 — 64 — 124 — 16 — 15 — 31 — 16 5 — 60 — 90 — 150 — 18 — 12 — 30 — 26 6 — 60 — 132 — 192 — 22 — 10 — 32 — 42 Question Two Given: The rate of labor (w) is 3 and the rate of capital (r) is 4. The manufacturer produces 100 pieces as weekly output. Step 1: Use the given rates to calculate the Cost of Labor, Cost of Capital, and Total Cost for each combination of Capital Units (K) and Labor Units (L). Cost of Labor = Labor Units (L) × w; Cost of Capital = Capital Units (K) × r; Total Cost = Cost of Labor + Cost of Capital Step 2: Calculate the values for each row. Capital Units (K) — Labor Units (L) — Quantity Output — I. Cost of Labor — II. Cost of Capital — III. Total Cost45 — 10 — 100 — 10 × 3 = 30 — 45 × 4 = 180 — 30 + 180 = 210; 28 — 20 — 100 — 20 × 3 = 60 — 28 × 4 = 112 — 60 + 112 = 172; 16 — 30 — 100 — 30 × 3 = 90 — 16 × 4 = 64 — 90 + 64 = 154; 12 — 40 — 100 — 40 × 3 = 120 — 12 × 4 = 48 — 120 + 48 = 168

Question One B) Cost out-put relationship. Step 1: Use the following formulas to complete the table: TC = TFC + TVC, AVC = TVC / Q, AFC = TFC / Q, AC = TC / Q or AFC + AVC, MC = ΔTC / ΔQ or ΔTVC / ΔQ.

Step-by-step solution

Use the following formulas to complete the table

Calculate the values for each column and row.

Use the given rates to calculate the Cost of Labor, Cost of Capital, and Total Cost for each combination of Capital Units (K) and Labor Units (L).

Calculate the values for each row.

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More Economics Questions

Capital Units (K)	Labor Units (L)	Quantity Output	I. Cost of Labor	II. Cost of Capital	III. Total Cost
45	10	100	$10 \times 3 = 30$	$45 \times 4 = 180$	$30 + 180 = 210$
28	20	100	$20 \times 3 = 60$	$28 \times 4 = 112$	$60 + 112 = 172$
16	30	100	$30 \times 3 = 90$	$16 \times 4 = 64$	$90 + 64 = 154$
12	40	100	$40 \times 3 = 120$	$12 \times 4 = 48$	$120 + 48 = 168$