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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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