Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $20 per unit. Complete the following table, and then answer the accompanying questions.   (1) (2) (3) (4) 5 6   L K Q MPL P VMPK   0 5 0         1 5 10         2 5 30         3 5 60         4 5 80         5 5 90         6 5 95         7 5 95         8 5 90         9 5 80         10 5 60         11 5 30             b. Which inputs are fixed inputs? Which are the variable inputs? c. How much are your fixed costs?

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
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Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $20 per unit. Complete the following table, and then answer the accompanying questions.
 

(1)

(2)

(3)

(4)

5

6

 

L

K

Q

MPL

P

VMPK

 

0

5

0

 

 

 

 

1

5

10

 

 

 

 

2

5

30

 

 

 

 

3

5

60

 

 

 

 

4

5

80

 

 

 

 

5

5

90

 

 

 

 

6

5

95

 

 

 

 

7

5

95

 

 

 

 

8

5

90

 

 

 

 

9

5

80

 

 

 

 

10

5

60

 

 

 

 

11

5

30

 

 

 

 

 

 

b. Which inputs are fixed inputs? Which are the variable inputs?
c. How much are your fixed costs?

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