You are assigned the task of computing the variable capital and labor costs for Cost Cutters production level. Below is a table with the capital and labor requirements for ten different levels of production.
Production Level |
Capital |
VC$12 |
Labor |
VC$6 |
TVC |
MC |
AVC |
0 |
0 |
0 |
|||||
1 |
3 |
6 |
|||||
2 |
6 |
10 |
|||||
3 |
9 |
13 |
|||||
4 |
12 |
16 |
|||||
5 |
15 |
20 |
|||||
6 |
18 |
25 |
|||||
7 |
21 |
31 |
|||||
8 |
24 |
38 |
|||||
9 |
27 |
46 |
|||||
10 |
30 |
55 |
Complete the table and answer the following:
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