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A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per
A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer the questions that follow. Instruction: Enter your responses for Average Product of Capital (APK) and Average Product of Labor (APL) rounded to two decimal places. All other responses should be entered as whole numbers. If you are entering a negative number. use a negative sign (-) where appropriate. ( 1 ) anuo III-ruin]. Product of capital, m; 200 400 600 W 200 100 o .100 .200 400 7600 HOWm-JU'U'thr HH f. Over what range of the variable input usage do increasing marginal returns exist? From to | 9. Over what range of the variable input usage do decreasing marginal returns exist? From| to| h. Over what range of input usage do negative marginal returns exist? From to|
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