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Rick Martin is the manager of a firm that produces an output that currently sells at $ 24 per unit. The firm uses only machinery
Rick Martin is the manager of a firm that produces an output that currently sells at $ 24 per unit. The firm uses only machinery and equipment, labor to produce its output. The rental rate on machinery and equipment is $ 240 per unit and the wage rate is $ 216 per worker. The firm is currently producing 124 units of its output. The firm is currently operating in the short run, renting 4 units of machinery and equipment, and employing 9 workers. Rick is considering whether he should change the current production level. He knows that the marginal product of labor from the last worker hired is 4 .What is the firm's total cost at the current level of output? What is the firm's profit at the current level of output? What is the firm's marginal cost at the current level of output? What can be said about the firm's current production level
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