Explore BrainMass

Wages in a Highly Competitive Market

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

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.

(see attachment for full description)

© BrainMass Inc. brainmass.com September 23, 2018, 2:02 pm ad1c9bdddf - https://brainmass.com/economics/managerial-economics/wages-highly-competitive-market-584405


Solution Summary

Solution determines the optimal number of variable input.