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 $50. How many units of output should the firm produce in the short run?
Consider the following cost information for a firm that operates in a perfectly competitive market. Q (quantity of output) Total cost ($) 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 $50. How many units of output should the firm produce in the short run?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the following cost information for a firm that operates in a
Q (quantity of output) |
Total cost ($) |
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
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