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September 23rd, 2022

7. Suppose that a firm is currently employing 20 workers, the only variable input at a wage rate of 60. The average product of labour is 30, the last worker added 12 units to total output, and total fixed cost is R3,600
a. What is marginal cost?
b. What is average variable cost?
c. How much output is being produced?
d. What is average total cost?
e. Is average variable cost increasing, constant, or decreasing? What about average total cost? Explain your answer.

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