7.The I taco Company is a profit maximizing firm that produced and sells DVD's in perfectly competitive product and labor markets. Each DVD sells for $2 and the wage rate is $20 per day. See the short run production table for DVD's below:

Quantity of Labor Number of DVD's per Day

1 20

2 50

3 75

4 90

5 100

6 105

7 108

a.What is the marginal revenue product of the 2^nd worker?

b.After which worker hired do diminishing marginal return begin?

c.What is the marginal product of the 4rth worker?

d.How many workers will be hired at a wage of $20 a day?

e.If fixed costs are $30 and 5 labor units are hired, what is the economic profit or loss?

f.Now assume the rate increases to $30, how many workers will now be hired?