Answered: K MPK MP/PK…

K MPK MP/PK MRP/PK L MPL MP/PL MRP/PL 1 28 7 14 1 15 5 10 2 24 6 12 2 12 4 8 3 20 5 10 3 9 3 6 4 12 4 8 4 6 2 4 5 8 2 4 5 3 1 2 6 4 1 2 6 1 0.5 1 7 2 0.5 1 7 0.5 0.25 0.5 8 1 0.25 0.5 8 0.25 0.1

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 6.12P

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Question

Assume: P_Q = $2.00 P_L = $2.00 P_K= $4.00

K MP_K MP/P_K MRP/P_K L MP_LMP/P_LMRP/P_L

1 28 7 14 1 15 5 10

2 24 6 12 2 12 4 8

3 20 5 10 3 9 3 6

4 12 4 8 4 6 2 4

5 8 2 4 5 3 1 2

6 4 1 2 6 1 0.5 1

7 2 0.5 1 7 0.5 0.25 0.5

8 1 0.25 0.5 8 0.25 0.13 0.26

9 0.5 0.125 0.25 9 0.125 0.06 0.12

This firm will earn profit =

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