Profit-maximizing number of inputs for the
Panther Widget Company |
|
|
PRODUCTION SCHEDULE |
COSTS |
REVENUES |
PROFIT |
Number of
workers |
Total Product |
Marginal Product |
Fixed Costs |
Variable Costs |
Total Costs |
Marginal Cost per
Unit |
Total Revenue |
Marginal Revenue |
Marginal Revenue
Product |
Total Profit |
0 |
0 |
|
$100 |
$0.00 |
$100.00 |
|
$0.00 |
$10.00 |
|
-$100.00 |
1 |
2 |
2 |
$100 |
$35.00 |
$135.00 |
$17.50 |
$20.00 |
$10.00 |
$20.00 |
-$115.00 |
2 |
8 |
6 |
$100 |
$70.00 |
$170.00 |
$5.83 |
$80.00 |
$10.00 |
$60.00 |
-$90.00 |
3 |
20 |
12 |
$100 |
$105.00 |
$205.00 |
$2.92 |
$200.00 |
$10.00 |
$120.00 |
-$5.00 |
4 |
35 |
15 |
$100 |
$140.00 |
$240.00 |
$2.33 |
$350.00 |
$10.00 |
$150.00 |
$110.00 |
5 |
52 |
17 |
$100 |
$175.00 |
$275.00 |
$2.06 |
$520.00 |
$10.00 |
$170.00 |
$245.00 |
6 |
70 |
18 |
$100 |
$210.00 |
$310.00 |
$1.94 |
$700.00 |
$10.00 |
$180.00 |
$390.00 |
7 |
85 |
15 |
$100 |
$245.00 |
$345.00 |
$2.33 |
$850.00 |
$10.00 |
$150.00 |
$505.00 |
8 |
93 |
8 |
$100 |
$280.00 |
$380.00 |
$4.38 |
$930.00 |
$10.00 |
$80.00 |
$550.00 |
9 |
90 |
-3 |
$100 |
$315.00 |
$415.00 |
|
$900.00 |
$10.00 |
-$30.00 |
$485.00 |
10 |
80 |
-10 |
$100 |
$350.00 |
$450.00 |
|
$800.00 |
$10.00 |
-$100.00 |
$350.00 |
|
Assume
the only variable cost is salary, at the rate of $35/worker. |
|
|
Assume
that widgets are sold in a perfectly competitive market for $10 each. |
|
|
|
|
|
|
|
|
|
|
|
|