Consider the short-run production of a firm with a single


Consider the short-run production of a firm with a single output Q, a fixed input K (capital), and a variable input L (labour).

(a) Define average product and marginal product of labour.

(b) Define average variable cost and marginal cost.

(c) Derive the relationships between marginal cost and marginal product of labour.

(d) Derive the relationships between average variable cost and average product of labour.

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Business Economics: Consider the short-run production of a firm with a single
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