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Wages in a Highly Competitive Market

A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $ 25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer the questions that follow.

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Solution Summary

Solution determines the optimal number of variable input.