A price-taking firm has total fixed costs of $40 and faces a market-determined price of $2 per unit of its output. The wage rate is $11 per unit of labor. Labor is the only variable input. Complete the following table and then answer the questions that follow.

a) How much labor should management hire to maximize profit?
b) How much output should management produce to maximize profit?
c) Does it matter whether management chooses labor input or units of output to maximize profit? Why?
d) How must labor should the manager hire if the wage rate rises to $15 per unit?

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Marginal Revenue Product Marginal Product Output Marginal Cost Profit Units of Labor 15 3 30 50 65 77 86 94 98 96 10