firm that employs only one variable input, labor, to produce a product that sells for $14 per unit. The wage rate is $24 per unit of labor and total fixed costs are $500. Fill in the blanks in each column of this table as instructed by the questions below: e- Compute marginal cost and fill in the blanks in column 7. At first, marginal cost ___________ (rises, falls) as marginal product rises, then marginal cost _____________
Consider a competitive, price-taking firm that employs only one variable input, labor, to produce a product that sells for $14 per unit. The wage rate is $24 per unit of labor and total fixed costs are $500. Fill in the blanks in each column of this table as instructed by the questions below:
e- Compute marginal cost and fill in the blanks in column 7. At first, marginal cost ___________ (rises, falls) as marginal product rises, then marginal cost _____________ (rises, falls) as marginal product falls.
f- The profit-maximizing level of output is ______ units because this is the last level of output for which _____________ exceeds _____________, or equivalently, _____________ exceeds _____________ .
G -Compute profit and fill in the blanks in column 8. The optimal level of labor employment and the optimal level of output both result in an identical maximum profit level of $______
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