Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $20 per unit. Complete the following table, and then answer the accompanying questions. (1)(2)(3)(4)56 LKQMPLPVMPK 050 1510 2530 3560 4580 5590 6595 7595 8590 9580 10560 11530 b. Which inputs are fixed inputs? Which are the variable inputs?c. How much are your fixed costs?

Capital and labor are the two inputs used in the production of goods and services. These are also…

Answered: Your product sells for $5 per unit,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $20 per unit. Complete the following table, and then answer the accompanying questions.

(1)	(2)	(3)	(4)	5	6
L	K	Q	MPL	P	VMP_K
0	5	0
1	5	10
2	5	30
3	5	60
4	5	80
5	5	90
6	5	95
7	5	95
8	5	90
9	5	80
10	5	60
11	5	30

b. Which inputs are fixed inputs? Which are the variable inputs?
c. How much are your fixed costs?

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