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What is your maximum profit? $4000 The profit-maximizing level al'labor and output is achieved where Vii-1PL = w. Here, VMPl = (112)2{3400 )(9)'-(L)'' = $1,200

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What is your maximum profit? $4000 The profit-maximizing level al'labor and output is achieved where Vii-1PL = w. Here, VMPl = (112)2{3400 )(9)'-\"(L)'\"' = $1,200 (L)'1-\" and w = $120 per day. Solving yields L = 100. The profitmaximizing level ofoutput is Q = 11_'{'.-}'}1-'2(100)\"2 = 60 units .The firm's fixed costs are $3,000, its variable costs are $120{100) = $12,000. and its total revenues are $400030) = $24,000. Profits are $24,000 - $12,000 - $3.000 = $4,000

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