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Use the data in Table 4.2 of the textbook to plot the relationships between revenue R, cost C, and profit ? (on the vertical axis)
Use the data in Table 4.2 of the textbook to plot the relationships between revenue R, cost C, and profit ? (on the vertical axis) and labor L (on the horizontal axis) at Leisure Lawn. At what level of employment does the "profit hill" peak?
04/epubcfi/6/26[%3Bund.vst.idref%3Dnav_13]!/4/2/16/14/8/3:378[nce%20%20ea] Q AA simply $300 per worker. Capital is fixed at > units, and the weekly cost of capital is $200 per unit, so Leisure Lawn's fixed cost Is $1,000 (= $200 x 5) per week. (See the cost entry in the table's first row.) Since each worker adds $300 to Leisure Lawn's weekly costs, cost grows $300 from row to row. TABLE 4.2. REVENUE, COST, AND PROFIT LABOR L (workers/week) OUTPUT q (lawns/week) REVENUE R ($/week) COST C (S/week) PROFIT * (S/week) 0 1.000 -1,000 90 1,300 -1,210 270 1,600 -1,330 17 510 1,900 -1,390 29 870 2,200 -1,330 47 1,410 2,500 -1,090 63 1,890 2,800 -910 77 2,310 3,100 -790 89 2,670 3,400 -730 10 100 3,000 3,700 -700 10 109 3,270 4,000 -730 11 117 3,510 4,300 -790 12 123 3,690 4,600 -910 Notes: Capital is fixed at K - 5. The price of lawn care is $30 per lawn, the wage is $300 per worker, and the price of capital is $200 per unit. Fixed cost is $1,000 (= $200 x 5) per weekStep by Step Solution
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