2. Consider a price-taking firm with total fixed cost of $80 and a market-determined price of $5 per unit for its output. The wage rate is $8 per unit of labor, the only variable input. Using the information provided, complete the table provided below. (7 pts) Units of Labor Marginal Total Output Product Revenue Revenue Marginal Total Revenue Variable Product Cost Total Marginal Cost Marginal Profit Cost 5 15 2 30 4 50

2. Consider a price-taking firm with total fixed cost of $80 and a market-determined price of $5 per unit for its output. The wage rate is $8 per unit of labor, the only variable input. Using the information provided, complete the table provided below. (7 pts) Units of Labor Marginal Total Output Product Revenue Revenue Marginal Total Revenue Variable Product Cost Total Marginal Cost Marginal Profit Cost 5 15 2 30 4 50

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 2QCMC

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