Consider the following cost information for a firm that operates in a perfectly competitive market.      Q (quantity of output) Total cost ($) 0 100 3 140 6 200 9 290 12 410 15 560 18 740     (1) Construct a column for the marginal cost.    (2) As the firm increase the output from 9 unit to 12 units, does the marginal product of labor rise or fall? Explain the reason.         (3)  Suppose that the market price is $50.  How many units of output should the firm produce in the short run?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider the following cost information for a firm that operates in a perfectly competitive market.

 

   Q (quantity of output)

Total cost ($)

0

100

3

140

6

200

9

290

12

410

15

560

18

740

 

 

(1) Construct a column for the marginal cost. 

 

(2) As the firm increase the output from 9 unit to 12 units, does the marginal product of labor rise or fall? Explain the reason.  

 

 

 

(3)  Suppose that the market price is $50.  How many units of output should the firm produce in the short run?  

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