General Information:This question has 27 blank spaces.13 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

A firm's product sells for $2 per unit in a highly competitive market.The firm produces output using capital with a weekly rent of $300 per unit and labor which is paid a wage of $300 per week.At the current level of capital, the marginal product of capital is 150.

1.Complete the following table and use this information to answer the questions that follow.(3 points)

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

K L Q AP_LMP_LVMP_L

2 0 0 0 0 0

2 1 50 ____ ____ ____

2 2 150 ____ ____ ____

2 3 300 ____ ____ ____

2 4 400 ____ ____ ____

2 5 450 ____ ____ ____

2 6 480 ____ ____ ____

2 7 490 ____ ____ ____

2 8 476 ____ ____ ____

2.At what level of output is the value of the marginal product of labor equal to the price of labor?(4 points)

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

The value of the marginal product of labor is equal to the price of labor at__________units of the product.

3.At what level of output should the firm produce to minimize its costs?How many units of labor should the firm hire?(6 points)

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

To minimize costs, the firm should produce_______units and hire________units of labor.