person who chooses not to wear a seat belt when driving an automobile exercising rational self-interest by choosing the option that gives him…
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A monopolist can sell 7 units per day at $7 per unit or 8 units per day at $6 per unit. Its marginal revenue for the eighth unit of output is:
September 3, 2020

Question:In the short run, we assume that capital is fixed input and labor is a variable input, so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm’s production function is q = f(L, K), where L is workers, and K is the fixed number of units of capital.

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A specific equation for the production function is given by: 1q = 8KL+ 5L2 — [§]L3. or, when R= 26, 1q = (8x26xL) + 5L2 — [§]L3. The level of output q for 10 units of labor input is 2246.67 (enter your response rounded up to two decimal places). The average productivity of these 10 units of labor is D (enter your response rounded up to two decimal places).

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