Week 5 Chapter 5: Production Process and Costs For this week read Chapter 5.Answer the following questionsQuestion ·Bottom of FormXYZ restaurant sells donuts at $2 per unit. It uses capital (which it rents at $5 per hour under a contract for 5 and labor (which is paid a wage of $150 per hour of labor services). Complete the following table and use that information to answer the following questions.KLQMPLAPLVMLFCVCTC5000 515050505025150175521257562.5150253003255322510075200254504755437515093.730025600625554507590150257507755645007502590092557400-5057.14-100251050107558425-7553.12 -150251200122559450-2550-502513501375510500-5050-10025150015255115252547.7502516501675 Define profit? What are the maximum profits this firm can earn? SHOW WORK

Total revenue can be calculated by using the following method as follows: When the price is $2 and…

Answered: Define profit? What are the maximum…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.9P

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Week 5 Chapter 5: Production Process and Costs

For this week read Chapter 5.

Answer the following questions

Question

·Bottom of Form

XYZ restaurant sells donuts at $2 per unit. It uses capital (which it rents at $5 per hour under a contract for 5 and labor (which is paid a wage of $150 per hour of labor services). Complete the following table and use that information to answer the following questions.

K	L	Q	MPL	APL	VML	FC	VC	TC
5	0	0	0
5	1	50	50	50	50	25	150	175
5	2	125	75	62.5	150	25	300	325
5	3	225	100	75	200	25	450	475
5	4	375	150	93.7	300	25	600	625
5	5	450	75	90	150	25	750	775
5	6	450	0	75	0	25	900	925
5	7	400	-50	57.14	-100	25	1050	1075
5	8	425	-75	53.12	-150	25	1200	1225
5	9	450	-25	50	-50	25	1350	1375
5	10	500	-50	50	-100	25	1500	1525
5	11	525	25	47.7	50	25	1650	1675

Define profit? What are the maximum profits this firm can earn? SHOW WORK

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