Purchase Solution

Finding Total Ecnomic Profit

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Here is the Scenerio-
Labor is only variable input.
Output is 4000 unit
Marginal Product of labor is 10
Average Product of labor is 50
Price of labor is \$150
Marginal product of capital is 40
Average product of capital is 60
Price of capital is \$240
Total Fixed Cost is \$16000

Output MC AVC AFC ATC Total Economic Profit
4000 __ __ __ __ _____

How I find those values....plz show me the Work too

Solution Summary

The total economic profit is found. The output for MC, AVC, AFC, ATC and total economic profit is found.

Solution Preview

MPL = 10 = Change in number of units/ Change in Labor
<br>APL = 50 = Total Units/ Total Labor
<br>P(labor) = \$150
<br>MPC = 40 = Change in number of units/ Change in ...

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