Fill the incomplete table which shows the cost information of a firm in the short run. Compute the shape of the MC curve also explain the law of diminishing returns.
Refer to the following incomplete table which the cost infoemation of a firm in the short run.
Output
|
AFC($)
|
TVC($)
|
AVC($)
|
MC($)
|
1
|
200
|
60
|
60
|
60
|
2
|
|
|
40
|
20
|
3
|
|
|
30
|
|
4
|
|
130
|
|
|
5
|
|
|
|
70
|
1.Copy the table and fill in the correct values to complete the table. If the firm can sell each unit of the product at $100, What is the optional output of the firm? What is the corresponding profit or loss?
2.Comment on the shape of the marginal cost (MC) curve and explain the law of diminishing returns that give to its shape.