Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, un Units of Labor 1 2 MO 4 5 6 7 Total Product 0 14 30 35 39 44 Marginal Product 14 10 2 Total Revenue $70 150 195 210 220 How many units of output are produced when 6 workers are employed?

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.