chapter 5 problem set

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. Marginal Value Marginal Product of Average Product Average Product Product of Capital Labor Output Capital, MPK of Capital, APK of Labor, APL Capital, VMPK O 20 50 50 2.5 200 7C Prey 1 of 6 Next >