Complete the table to answer the question. Labour (L) R500 Total Product (TP) Average Product (AP) Marginal Product (MP) Fixed Cost (FC) Variable Cost (VC) Total Cost (TC) Marginal Cost (MC) Average Fixed Cost (AFC) Average Variable Cost (AVC) Average Total Cost (ATC) 0 0 5000 1 9 2 20 3 34 4 48 5 60 6 70 7 78 8 84 9 88 10 90 When TP=84, which of the following statements is true: A. Marginal cost curve is downward sloping and the average total cost curve is upward sloping B. Marginal cost curve is upward sloping and the average total cost curve is downward sloping C. Marginal cost curve is upward sloping and the average variable cost curve is downward sloping D. Marginal cost curve is downward sloping and the average variable cost curve is upward sloping E. Average variable cost curve is upward sloping and the average total cost curve is upward sloping
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- VC = L * R/hr - For L=0, VC = 0 * 300 = 0 - For L=1, VC = 1 * 300 = 300 - For L=2, VC = 2 * 300 = 600 - For L=3, VC = 3 * 300 = 900 - For L=4, VC = 4 * 300 = 1200 - For L=5, VC = 5 * 300 = 1500 - For L=6, VC = 6 * 300 = 1800 - For L=7, VC = 7 * 300 = 2100 - For Show more…
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