Dominick Salvatore Schaums Outline of Microeconomics, 4th edition Schaums Outline Series 2006

170 COSTS OF PRODUCTION [CHAP. 7
7.22 From the TP L schedule in Table 7.12, and assuming that the price of labor is $300 per unit, (a) derive the
TVC schedule and from it the AVC and MC schedules and (b) plot these curves.
(a) Table 7.13
(1) (2) (3) (4) (5)
L Q TVC ($) AVC ($) MC ($)
1 100 300 3.00 ..
2 300 600 2.00 1.50
3 700 900 1.29 0.75
4 1000 1200 1.20 1.00
5 1200 1500 1.25 1.50
6 1300 1800 1.38 3.00
7 1350 2100 1.56 6.00
(b)
Fig. 7-20
7.23 (a) On the same set of axes, draw again the AVC curve and the MC curve of Fig. 7-20; on a second set of
axes directly below the first, plot the AP L and the MP L schedules of Problem 7.21, but with the TP L