You are given the following table by one of your analysts. Provide the profit maximizing point and explain how you would determine how much labor you will need to maximize profits. Determining the Profit-Maximizing Point of Labor UseAmountofOutput0255178110134173163160150TotalMarginalRevnue Revenue07691,5692,3993,5374,2754,9215,3835,2294,61407698008301138738646462-154-615AmountTotalofCost ofVariableLabor (atInput $300 Per(labor)0123456789Worker)03006009001,2001,5001,8002,1002,4002,700Marginalcost0300300300300300300300300300

Marginal revenue is the addition to the total revenue from the sale of an additional unit of output.…

Answered: You are given the following table by…

You are given the following table by one of your analysts. Provide the profit maximizing point and explain how you would determine how much labor you will need to maximize profits.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

You are given the following table by one of your analysts. Provide the profit maximizing point and explain how you would determine how much labor you will need to maximize profits.

Determining the Profit-Maximizing Point of Labor Use
Amount
of
Output
0
25
51
78
110
134
173
163
160
150
Total
Marginal
Revnue Revenue
0
769
1,569
2,399
3,537
4,275
4,921
5,383
5,229
4,614
0
769
800
830
1138
738
646
462
-154
-615
Amount
Total
of
Cost of
Variable
Labor (at
Input $300 Per
(labor)
0
1
2
3
4
5
6
7
8
9
Worker)
0
300
600
900
1,200
1,500
1,800
2,100
2,400
2,700
Marginal
cost
0
300
300
300
300
300
300
300
300
300

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