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Given an output price of $500 total output (in body table), the quantity of each input (in rows 1-5), the price of inputs (in columns),

Given an output price of $500 total output (in body table), the quantity of each input (in rows 1-5), the price of inputs (in columns), and a budget of $1,200,000, calculate marginal product and marginal revenue product for each input (row 2-5). Which resources in what quantities should be employed to maximize the value of the firm?

Low skill labor high skill labor Supplies Low Cap. Equip. High Cap. Equip. Building & Land
Input $30,000 $50,000 $20,000 $100,000 $400,000 $500,000
1

64

120 50 250

1,000

1,350
2 130 220 98 475 - -
3 200 300 144 675 - -
4 266 360 186 850 - -
5 330 400 228 1,000 -

-

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