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A firm has the following production function: y = f(x) where y is the output and x is the input. If the price of y
A firm has the following production function: y = f(x) where y is the output and x is the input. If the price of y is $2 per unit and the price of x is $6 per unit, complete the following table and plot output, AP, and MP on a graph. Determine the optimum level of input x that should be used to maximize profit, given fixed costs = $100
INPUT | OUTPUT | AP | MP | TR | TC | PROFIT |
0 | 000 | |||||
1 | 2 | |||||
2 | 10 | |||||
3 | 23 | |||||
4 | 38 | |||||
5 | 54 | |||||
6 | 70 | |||||
7 | 85 | |||||
8 | 99 | |||||
9 | 110 | |||||
10 | 117 | |||||
11 | 120 | |||||
12 | 120 | |||||
13 | 118 |
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