As the manager of Lewis Inc., a company that produces lamps, you conducted a study of the production process. The study was based on 8 units of capital currently used by your firm. (This is the short run in which capital is fixed.) Per unit capital costs are $20 and the price of lamps is $12 each (this is a competitive market). Workers at Lewis Inc. are paid $60 per labor unit. (You can think of one unit of labor as one worker, and each worker is paid $60.) Fill in the blanks in the following table. Hint: Please follow Table 1 on page 364 of the textbook. Please note that a competitive, profit-maximizing firm hi 1 Labor (L) 0 1 2 3 4 5 6 7 8 9 10 Capital (K) 8 8 8 8 8 8 8 8 ∞∞∞ 8 8 Output (Q) 0 10 30 60 80 90 95 95 90 80 60 Marginal Product of Labor MPL I Value of the Marginal Product of Labor VMPL
As the manager of Lewis Inc., a company that produces lamps, you conducted a study of the production process. The study was based on 8 units of capital currently used by your firm. (This is the short run in which capital is fixed.) Per unit capital costs are $20 and the price of lamps is $12 each (this is a competitive market). Workers at Lewis Inc. are paid $60 per labor unit. (You can think of one unit of labor as one worker, and each worker is paid $60.) Fill in the blanks in the following table. Hint: Please follow Table 1 on page 364 of the textbook. Please note that a competitive, profit-maximizing firm hi 1 Labor (L) 0 1 2 3 4 5 6 7 8 9 10 Capital (K) 8 8 8 8 8 8 8 8 ∞∞∞ 8 8 Output (Q) 0 10 30 60 80 90 95 95 90 80 60 Marginal Product of Labor MPL I Value of the Marginal Product of Labor VMPL
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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As the manager of Lewis Inc., a company that produces lamps, you conducted a
study of the production process. The study was based on 8 units of capital currently
used by your firm. (This is the short run in which capital is fixed.)
1
Week 7 Assignment Compatibility Mode Saved to this PC
Text Predictions: On
@
2
W
3
Per unit capital costs are $20 and the price of lamps is $12 each (this is a
competitive market). Workers at Lewis Inc. are paid $60 per labor unit. (You can
think of one unit of labor as one worker, and each worker is paid $60.)
Fill in the blanks in the following table.
Hint: Please follow Table 1 on page 364 of the textbook. Please note that a competitive, profit-maximizing firm
hi
1
7
Labor
(L)
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1
2
8
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8
8
8
8
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8
8
8
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Output
(Q)
6
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10
30
60
80
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95
90
80
60
Marginal Product
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7
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As the manager of Lewis Inc., a company that produces lamps, you conducted a
study of the production process. The study was based on 8 units of capital currently
used by your firm. (This is the short run in which capital is fixed.)
1
Week 7 Assignment Compatibility Mode Saved to this PC
Text Predictions: On
@
2
W
3
Per unit capital costs are $20 and the price of lamps is $12 each (this is a
competitive market). Workers at Lewis Inc. are paid $60 per labor unit. (You can
think of one unit of labor as one worker, and each worker is paid $60.)
Fill in the blanks in the following table.
Hint: Please follow Table 1 on page 364 of the textbook. Please note that a competitive, profit-maximizing firm
hi
1
7
Labor
(L)
E
0
1
2
8
9
10
Accessibility: Unavailable
$
4
3
4
5
6
7
FI
.
R
Q
C
Capital
(K)
F5
%
8
8
8
8
8
8
8
8
8
8
8
L
T
i
F6
Output
(Q)
6
0
10
30
60
80
90
95
95
90
80
60
Marginal Product
of Labor
MPL
&
7
O
L
F8
U
I
*
A
8
F9
Value of the
Marginal Product
of Labor
VMP
(
9
F10
W
FO:-
monica fagget
O
Focus DO
F11
FO: +
P
F
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