Profit-maximizing number of inputs for the
Panther Widget Company |
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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 |
100 |
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$0
|
$10
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-100 |
1 |
2 |
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2 |
8 |
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3 |
20 |
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4 |
35 |
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5 |
52 |
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6 |
70 |
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7 |
85 |
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8 |
93 |
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9 |
90 |
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10 |
80 |
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Assume
the only variable cost is salary, at the rate of $35/worker. |
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Assume
that widgets are sold in a perfectly competitive market for $10 each. |
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