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 (AP_K) and Average Product of Labor (AP_L) 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.

a. Identify the fixed and variable inputs.

• Capital and labor are fixed inputs.
• Labor is the fixed input and capital is the variable input.
• Capital and labor are variable inputs.
• Capital is the fixed input and labor is the variable input.

b. What are the firm's fixed costs?

$______________

c. What is the variable cost of producing 475 units of output?

$_______________

d. How many units of the variable input should be used to maximize profits?

___________

e. What are the maximum profits this firm can earn?

$___________

f. Over what range of the variable input usage do increasing marginal returns exist?

From __________to________

g. Over what range of the variable input usage do decreasing marginal returns exist?

From _________to__________

h. Over what range of input usage do negative marignal returns exist?

From _________to_______