Business, 15.07.2020 03:01 danielboek

The manager of a national retailing outlet recently hired an economist to estimate the firm’s production function. Based on the economist’s report, the manager now knows that the firm’s production function is given below and that capital is fixed at 16 units. a. Calculate the average product of labor when 25 units of labor are utilized. b. Calculate the marginal product of labor when 25 units of labor are utilized. c. Suppose the firm can hire labor at a wage of $50 per unit and output can be sold at a price of $200 per unit. Determine the profit-maximizing levels of labor and output. d. What is the maximum price of capital at which the firm will still make nonnegative profits

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