2. Consider a typical office-cleaning firm that currently faces $24 in fixed costs and an $8 hourly wage for workers. The price the firm gets for each office cleaned in a large office building is $56 at the present equilibrium. The production function of the firm is shown in the following table.

Number of Offices Cleaned Hours of Work 0 0 1 5 2 9 3 15 4 22 5 30

a. Find marginal costs and average total costs for the typical firm.

b. How many offices are cleaned by the typical firm at the present equilibrium price of $56? What are the firm’s profits at this equilibrium?

c. What is the long-run equilibrium price level, assuming that the office-cleaning market is competitive?

d. How many offices are cleaned by the typical firm in long-run equilibrium?