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    Managerial Economics and Profit Maximization

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    13. Suppose that the firm's Production Data is given in the following schedule (where Q is the level of output).
    Workers Output
    Q (units)
    0 0
    1 600
    2 1000
    3 1290
    4 1480
    5 1600
    6 1680

    If P=$50 and w=$14,500, how many workers should the firm hire to maximize profits?

    Workers Output (Q) MPL
    0 0 ---
    1 600 600
    2 1000 400
    3 1290 290
    4 1480 190
    5 1600 120
    6 1680 80
    What is 2 = $14500? w=$14,500.

    9. Suppose that the firm's cost function is given in the following schedule (where Q is the level of output).
    Output
    Q (units) Total Cost
    0 7
    1 25
    2 37
    3 45
    4 50
    5 53
    6 58
    7 66
    8 78
    9 96
    10 124

    Determine the:
    (a) Marginal cost schedule
    See table below.

    (b) Total cost schedule

    Output (Q) Total Cost MC
    0 7 ---
    1 25 18
    2 37 12
    3 45 8
    4 50 5
    5 53 3
    6 58 5
    7 66 8
    8 78 12
    9 96 18
    10 124 28

    E = 1.58689459
    What problem did this address?
    Workers Output (Q) MPL
    0 0 ---
    1 600 600
    2 1000 400
    3 1290 290
    4 1480 190
    5 1600 120
    6 1680 80

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    https://brainmass.com/economics/output-and-costs/managerial-economics-profit-maximization-117755

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    13.
    P is price per unit and w is cost of 1 unit of labor. To maximize profits, the firm should hire as many labor till we reach the point where MRP (Marginal Revenue Product) = w (Wages Rate)
    Workers Output (Q) MPL MRL = ...

    Solution Summary

    This job shows how to attain profit maximization.

    $2.19