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**This table helps understand the optimal level of labor usage for maximizing profit by analyzing the relationship between labor input and economic outputs.| Amount of Output | Total Revenue | Marginal Revenue | Amount of Variable Input (Labor) | Total Cost of Labor (at $300 Per Worker) | Marginal Cost ||------------------|---------------|------------------|----------------------------------|------------------------------------------|---------------|| 0 | 0 | 0 | 0 | 0 | 0 || 25 | 769 | 769 | 1 | 300 | 300 || 51 | 1,569 | 800 | 2 | 600 | 300 || 78 | 2,399 | 830 | 3 | 900 | 300 || 110 | 3,537 | 1,138 | 4 | 1,200 | 300 || 134 | 4,275 | 738 | 5 | 1,500 | 300 || 173 | 4,921 | 646 | 6 | 1,800 | 300 || 163 | 5,383 | 462 | 7 | 2,100 | 300 || 160 | 5,229 | -154 | 8 | 2,400 | 300 || 150 | 4,614 | -615 | 9 | 2,700 | 300 |**Explanation:**- **Amount of Output:** Shows the quantity of goods produced.- **Total Revenue:** Represents the total income from sales at each output level.- **Marginal Revenue:** Indicates the additional revenue gained from producing one more unit of output.- **Amount of Variable Input (Labor):** Represents the number of workers used.- **Total Cost of Labor:** Calculated by multiplying the number of workers by $300.- **Marginal Cost:** Represents the change in total cost when producing one more unit of output, constantly $300 in this scenario.The goal is to equate Marginal Revenue (MR) with Marginal

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

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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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