Assumptions: Each unit of the variable resource (labor) earns $20/day. Fixed costs are $50.
| Units of Variable Resource | Total Product | Marginal Product | Average Product | Fixed Costs | Total Variable Costs | Total Cost | Marginal Cost | Average Variable Cost | Average Total Cost |
| 0 | 0 | 50 | |||||||
| 1 | 8 | 8 | 8 | ||||||
| 2 | 20 | 12 | 10 | ||||||
| 3 | 34 | 14 | 11.3 | ||||||
| 4 | 46 | 12 | 11.5 | ||||||
| 5 | 56 | 10 | 11.2 | ||||||
| 6 | 64 | 8 | 10.7 | ||||||
| 7 | 70 | 6 | 10 | ||||||
| 8 | 74 | 4 | 9.3 | ||||||
| 9 | 75 | 1 | 8.3 |
| Units of Variable Resource | Total Product | Marginal Product | Average Product | Fixed Costs | Total Variable Costs | Total Cost | Marginal Cost | Average Variable Cost | Average Total Cost |
| 0 | 0 | $50.00 | 0 | $50.00 | |||||
| 1 | 8 | 8 | 8 | $50.00 | $20.00 | $70.00 | $2.50 | $2.50 | $8.75 |
| 2 | 20 | 12 | 10 | $50.00 | $40.00 | $90.00 | $1.67 | $2.00 | $4.50 |
| 3 | 34 | 14 | 11.3 | $50.00 | $60.00 | $110.00 | $1.43 | $1.76 | $3.24 |
| 4 | 46 | 12 | 11.5 | $50.00 | $80.00 | $130.00 | $1.67 | $1.74 | $2.83 |
| 5 | 56 | 10 | 11.2 | $50.00 | $100.00 | $150.00 | $2.00 | $1.79 | $2.68 |
| 6 | 64 | 8 | 10.7 | $50.00 | $120.00 | $170.00 | $2.50 | $1.88 | $2.66 |
| 7 | 70 | 6 | 10 | $50.00 | $140.00 | $190.00 | $3.33 | $2.00 | $2.71 |
| 8 | 74 | 4 | 9.3 | $50.00 | $160.00 | $210.00 | $5.00 | $2.16 | $2.84 |
| 9 | 75 | 1 | 8.3 | $50.00 | $180.00 | $230.00 | $20.00 | $2.40 | $3.07 |
This page was last modified Monday, February 3, 1997.