1.The following data represents output for a perfectly competitive firm with a product price of $2 per...

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1.The following data represents output for a perfectly competitive firm with a product price of $2 per unit. Assume that the productivity of each resource is independent of the quantity of the other two.

a. Fill in the table.

b. If the price of labor is $4 per unit, the price of capital is

$10 per unit, and the price of land is $80 per unit, what is the profit-maximizing combination of resources?

Explain in terms of marginal revenue product.

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Principles Of Economics

ISBN: 9780135161104

13th Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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Question Posted: Nov 13, 2024 04:01 AM

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1.The following data represents output for a perfectly competitive firm with a product price of $2 per...

Question:

0 0 Total Total MPL TR MRP ($) Total Total MPK TR MRP (S) Total Total MPA TR MRPA ($) Labor Product (5) Capital Product (5) Land Product (5) Units Units Units 1 12 1 20 1 100 10 5 300 2 20 2 35 2 180 3 26 3 45 3 240 4 30 4 50 4 280 10 6 53 6 310 5 32 5 52 6 10 32

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Principles Of Economics

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