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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Question
![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)
Marginal Total
Revenue Variable
Product
Units
of
Labor
Marginal Total
Output
Product Revenue Revenue
Marginal
Total Marginal
Cost Cost
Profit
Cost
5
15
2
3
30
50
5
6
65
77
7
86
94
8
98
|10
96](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d7b5178-63c6-4fa5-82f6-fc11e6740c67%2Fb3e2e08e-c94d-4f43-bb28-d011d39b7bf7%2Fr9o3n2h_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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)
Marginal Total
Revenue Variable
Product
Units
of
Labor
Marginal Total
Output
Product Revenue Revenue
Marginal
Total Marginal
Cost Cost
Profit
Cost
5
15
2
3
30
50
5
6
65
77
7
86
94
8
98
|10
96
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