How was the profit solved at Number 2 letter B? АDEFHQuantity LaborCost /unitVariable Cost (w*L)Total Revenue (P*Q) TR - VCProfit242751100624-476-117664445.312522001664-536-123611634.4827586233003016-284-984176828.9772727344004576176-5242201028.1818181855005720220-4802401230.4166666766006240-360-10602481433.8709677477006448-1252-1952Wage550Rental700Price26 1. The production function of a small firm that produces t-shirts is given by the tablebelow.0 4 68 10 12 14 16 18 20 22 240 9 18 33 57 72 84 93 99 102 102 99A. For each L, solve for AP and MP. Round-up your answers to two decimals.Represent your answers on a table. No need to show the solutions,B. What would be the output elasticities of labor? Round-up your answers to twodecimals. If the firm is hiring 16 and 12 workers, interpret the computed ɛ, values.C. Identify the range of number of laborers under increasing marginal returns,diminishing marginal returns, and negative marginal returns.D. Explain why the firm experiences diminishing marginal returns.E. If the firm sells each t-shirt for P75 and each worker receives a wage of P450 perday, what is the optimal number of laborers to hire to maximize profits?2. The table below shows the number of total product produced by its correspondingnumber of laborers employed. Assume that each laborer receives P550 as wage and thefirm pays P700 rental fee for the equipment it uses.Q0 24 64 116L02 41762202402488101214A. If the firm wants to minimize the cost per unit of production, how many units ofoutput must it produce?B. If the product is sold for P26, should the seller still continue production? If yes,how many units of output? Justify your answer.

2. The table below shows the number of total product produced by its corresponding number of laborers employed. Assume that each laborer receives P550 as wage and the firm pays P700 rental fee for the equipment it uses. e0 24 64 116 176 220 L024 240 248 8 10 12 14 A. If the firm wants to minimize the cost per unit of production, how many units of output must it produce? B. If the produet is sold for P26, should the seller still continue production? If yes, how many units of output? Justify your answer.

2. The table below shows the number of total product produced by its corresponding number of laborers employed. Assume that each laborer receives P550 as wage and the firm pays P700 rental fee for the equipment it uses. e0 24 64 116 176 220 L024 240 248 8 10 12 14 A. If the firm wants to minimize the cost per unit of production, how many units of output must it produce? B. If the produet is sold for P26, should the seller still continue production? If yes, how many units of output? Justify your answer.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.3CE

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