10.Consider a price-taking firm that has total fixed cost of $50 and faces a market- determined price of $2 per unit for its output. The wage rate is $10 per unit of labor, the only variable input. Using the following table, answer the questions below. (2) (3) (5) (6) Units of labor Marginal Marginal product Marginal Output revenue product cost Profit 1 5 15 30 50 66 71 86 94 10 a. Fill in the blanks in column 3 of the table by computing the marginal product of labor for each level of labor usage. b. Fill in the blanks in column 4 of the table by computing the marginal revenue prod uct for each level of labor usage. c. How much labor should the manager hire to maximize profit? Why? 2 3 4 6 8 9 *

10.Consider a price-taking firm that has total fixed cost of $50 and faces a market- determined price of $2 per unit for its output. The wage rate is $10 per unit of labor, the only variable input. Using the following table, answer the questions below. (2) (3) (5) (6) Units of labor Marginal Marginal product Marginal Output revenue product cost Profit 1 5 15 30 50 66 71 86 94 10 a. Fill in the blanks in column 3 of the table by computing the marginal product of labor for each level of labor usage. b. Fill in the blanks in column 4 of the table by computing the marginal revenue prod uct for each level of labor usage. c. How much labor should the manager hire to maximize profit? Why? 2 3 4 6 8 9 *

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Description: economics question. answer B, C paid to resources used by the firms?10.Consider a price-taking firm that has total fixed cost of $50 and faces a market-determined price of $2 per unit for its output. The wage rate is $10 per unit of labor, theonly va

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 3PA

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