Question Three (40 points): Assume that the price in the market is $2 per output, the wage rate paid to each worker is $20/day and the total fixed cost = $10 Workers Op Variable Total Total Marginal Marina Marginal Wheel Reven Revenue Costudo day day sday products Suit Suit Worker 0 per day per day com 1 40 1 130 165 181 7 1. Complete the missing information in the above table. (14 points) 2. From the above table, what is the maximum profit the producer will make? Explain your answer using the MR/MC concept. (6 points) 3. From the above table, how many workers the producer should use? (6 points) 4. A firm encountering economies of scale over some range of output will have a: 6 points) A) rising long-run average cost curve. B) falling long-run average cost curve. C) constant long-run average cost curve. D) rising, then falling, then rising long-run average cost curve. Explain your answer. 5. Given the following table for a firm's output and total cost: (8 points) Dupu Teal.com 1 $40 2 520 3 4 596 5:20 $140 5 $190 Does the above firm experiences economies of scale, constant returns to scale or diseconomies of scale? Justify your answer. Best wishes Fall 2020-2021 Question Three (40 points): Assume that the price in the market is $2 per output, the wage rate paid to each worker is $20/day and the total fixed cost = $10 Workers Op Variable Total Total Marginal Marina Marginal Wheel Reven Revenue Costudo day day sday products Suit Suit Worker 0 per day per day com 1 40 1 130 165 181 7 1. Complete the missing information in the above table. (14 points) 2. From the above table, what is the maximum profit the producer will make? Explain your answer using the MR/MC concept. (6 points) 3. From the above table, how many workers the producer should use? (6 points) 4. A firm encountering economies of scale over some range of output will have a: 6 points) A) rising long-run average cost curve. B) falling long-run average cost curve. C) constant long-run average cost curve. D) rising, then falling, then rising long-run average cost curve. Explain your answer. 5. Given the following table for a firm's output and total cost: (8 points) Dupu Teal.com 1 $40 2 520 3 4 596 5:20 $140 5 $190 Does the above firm experiences economies of scale, constant returns to scale or diseconomies of scale? Justify your answer. Best wishes Fall 2020-2021