economics question. answer D, E 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 variable input. Using the following table, answer the questions below.(2)(5)(6)Units of(3)MarginalproductMarginalMarginallaborOutputrevenue product costProfit15215330450565677786949810a. Fill in the blanks in column 3 of the table by computing the marginal product oflabor 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?d. Fill in the blanks in column 5 of the table by computing marginal cost.e. How many units of output should the manager produce to maximize profit? Why?f. Fill in the blanks in column 6 with the profit earned at each level of labor usage.g. Do your answers to parts c and e maximize profit? Does it matter whether themanager chooses labor usage or chooses output to maximize profit? Why?k. How much labor should the manager hire when the wage rate is $20? How muchprofit is earned? Is marginal product greater or less than average product at thislevel of labor usage? Why does it matter?89

d. Fill in the blanks in column 5 of the table by computing marginal cost. Labour output TFC…

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. (5) Units of labor (3) Marginal product Marginal Marginal Output revenue product cost Profit 1 5 2 3 30 10 2. Fill in the blanks in column 3 of the table by computing the marginal product of labor for each level of labor usage. 5 7 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. (5) Units of labor (3) Marginal product Marginal Marginal Output revenue product cost Profit 1 5 2 3 30 10 2. Fill in the blanks in column 3 of the table by computing the marginal product of labor for each level of labor usage. 5 7 8 9

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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