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Question
Use the data in the table below to answer the following questions about a firm.Units of Units of Total Marginal Output
Input X Input Y Product Product of X Price
0 25 0 $10
1 25 2 10
2 25 7 10
3 25 14 10
4 25 20 10
5 25 23 10
6 25 24 10
a. Complete the table by calculating the marginal product of input X.
b. Compute the marginal revenue produce of input X.
c. If the price of input X were $30 per unit, how many units should the firm use per unit of time to maximize profit? Explain why profit is maximized.
Answer
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Related questions
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Q:
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Q:
Scenario 14.4:
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Use the following statements to answer this question:
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Q:
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Q:
The marginal revenue product can be expressed as the
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D) average physical product of the input times the marginal revenue received from the sale of the final product.