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Kasta88
Answers (1)
Minimum AVC occurs when MP=AP. This occurs at 80 units of labor and 20000 units of output (AP x L = 20000). From this AVC = w / AP = 2 / 250 = .008 For part 4, at 100 units of labor, AP = 225 so Q = 22500 (225 x 100). You can calculate TVC = $2 x 100 units
