Each unit of input, X, costs $10. Fixed costs are $50, regardless of the level of output.
Labor, X |
Total Output (TPP) |
Marginal Physical Product (MPP) |
TFC |
TVC |
TC |
AFC |
AVC |
ATC |
MC/unit |
0 |
0 |
|
|
|
|
|
|
|
|
1 |
15 |
|
|
|
|
|
|
|
|
2 |
45 |
|
|
|
|
|
|
|
|
3 |
70 |
|
|
|
|
|
|
|
|
4 |
90 |
|
|
|
|
|
|
|
|
5 |
105 |
|
|
|
|
|
|
|
|
6 |
110 |
|
|
|
|
|
|
|
|
7 |
112 |
|
|
|
|
|
|
|
|
c. Find the level of profit at the optimal level of output. Explain what would happen if the firm produced one more unit of output in terms of marginal cost and marginal revenue.
Please provide explanations for b and c. Appreciate all the help I can get. It's a school assignment. Thanks.