General Information:This question has 12 blank spaces.29 points in total.

Instructions:Report all monetary values up to 2 decimal places.Do not use any commas.Where applicable, use only the words/phrases provided inred

Suppose a firm is currently employing 20 workers, the only variable input at a wage of $60.The average product of labor is 30, and the last worker added 12 units to the total output.Total fixed cost is $3600 and the firm's marginal cost at the current level of output is $5.

1. How much output is the firm currently producing?(3 points)

Complete the sentence by entering a numerical value (0.00 is acceptable) in the blank space provided.

The firm is currently producing ______units of output.

2.What can you say about the firm's variable cost at the current level of output?(6 points)

Complete the sentence by entering a numerical value (0.00 is acceptable) in the blank spaces provided.

At the current level of output, the firm's total variable cost is $______and the firm's average variable cost is $_______.

3. What can you say about the firm's total cost at the current level of output?(6 points)

Complete the sentence by entering a numerical value (0.00 is acceptable) in the blank spaces provided.

At the current level of output, the firm's total cost is $______and the firm's average total cost is $_________.

4.What can one say about the firm's average variable cost?(4 points)

Complete the sentence by entering one of the following phrases in the blank spaces provided:

in the first blank space:is equal to|is greater than|is less than

in the second blank space:is at a maximum|is at a minimum|is decreasing|is increasing

The firm's average variable cost_______the firm's marginal cost and so we can say the firm's average variable cost_________with output.

5.What can one say about the firm's average total cost?(4 points)

Complete the sentence by entering one of the following phrases in the blank spaces provided:

in the first blank space:is equal to|is greater than|is less than

in the second blank space:is at a maximum|is at a minimum|is decreasing|is increasing

The firm's average total cost________the firm's marginal cost and so we can say the firm's average total cost_________with output.

6.Consider that the market price is $7.Is the firm producing at its profit-maximizing level of output?(6 points)

Complete the sentences by entering one of the following phrases or a numerical value (0.00 is acceptable) in the blank space provided:

in the first blank space: a numerical value

in the second blank space:is equal to|is greater than|is less than

in the third blank space:is|is not

Given the market price of $7, at the firm's current level of output, the value of the firm's marginal product of labor is________and this_________that the current wage rate.The firm_________producing at its profit-maximizing level of output.