With Table 4-2 as a starting point, recompute TVP and MVP using the two additional product prices discussed ($2/unit, and $.50/unit). Construct a graph and plot these MVP curves, as well as the MVP curve when Py = $1.00/unit. What is the optimal rate to use X1, at each of these prices, given Px1 = $5.00/unit? Do these adjustments in response to product price changes make sense?

TABLE 4-2 Functional Relationships (from Table 4-1) in Value Terms (1) (2) (3) Total Value (4) (5) Variable Average Value Marginal Value Marginal Factor Input Product Product Cost ( X1 ) Product (TVP) (AVP) (MVP) (MFC) 0 $ 0 $ 0 $ 7.50 $5.00 10 75 7.50 17.00 5.00 20 245 12.25 19.00 5.00 30 435 14.50 12.50 5.00 40 560 14.00 8.80 5.00 50 648 12.96 6.20 5.00 60 710 11.83 MVP = MFC 4.30 5.00 70 753 10.76 2.90 5.00 80 782 9.78 1.80 5.00 90 800 8.89 1.00 5.00 100 810 8.10 -0.20 5.00 110 808 7.35