Module 11 1. Explain how the Profit maximizing level of an input is determined. I 2. Spud sells French fries at the county fair and charges $6 per bucket of fries. By hiring one cook at $10 per hour, the stand can provide 240 buckets of fries per eight-hour day By hiring a second cook at the same wage rate, the stand can now provide a total of 420 buckets per day. Calculate the marginal product of the second cook. (Show your work) 3. Consider a small landscaping company run by Mr. Brush. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $25,000 to $30,000. If he adds one more tractor, monthly revenue will increase from $25,000 to $35,000. Each additional worker costs $1,500 per month, while an additional tractor would cost $3,000 per month. a. What is the marginal revenue of labor? b. What is the marginal revenue of capital? c. What is the ratio of the marginal revenue product of labor to the price of labor ? d. What is the ratio of the marginal revenue product of capital to the price of capital? e. Is the firm using the least costly combination of inputs