Please assist me with the given problem.
Problem 1) Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below:
|
Number of
Worker Hours
|
Output
|
Marginal Product
|
Fixed
Cost
|
Variable
Cost
|
Total
Cost
|
Marginal
Cost
|
Average
Variable
Cost
|
Average
Total
Cost
|
|
0
|
0
|
--
|
|
|
20,000
|
--
|
--
|
--
|
|
50
|
400
|
|
|
|
20,250
|
|
|
|
|
100
|
900
|
|
|
|
20,500
|
|
|
|
|
150
|
1300
|
|
|
|
20,750
|
|
|
|
|
200
|
1600
|
|
|
|
21,000
|
|
|
|
|
250
|
1800
|
|
|
|
21,250
|
|
|
|
|
300
|
1900
|
|
|
|
21,500
|
|
|
|
|
350
|
1950
|
|
|
|
21,750
|
|
|
|
Problem 2) How would each of the following affect the firm's marginal, average, and average variable cost curves?
a. An increase in wages
b. A decrease in material costs
c. The government imposes a fixed amount of tax.
d. The rent that the firm pays on the building that it leases decreases.