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10. Consider a price-taking firm that has total fixed cost of $750 and faces a market-determined price of $10 per unit for its output. The wage rate is $110 per unit of labor, the only variable input. Using the following table, answer the questions below. (1) -12) (3) (5) (6) (4) Marginal revenue product Units of labor Marginal product Marginal cost Output Profit 1 10 2 30 3 60 4 100 5 135 6 165 7 190 8 210 9 225 10 235 a. Fill in the blanks in column 3 of the table by computing the marginal product of labor for each level of labor usage. b. Fill in the blanks in column 4 of the table by computing the marginal revenue product for each level of labor usage. C. How much labor should the manager hire to maximize profit? Why? d. Fill in the blanks in column 5 of the table by computing marginal cost. e. How many units of output should the manager produce to maximize profit? Why? f. Fill in the blanks in column 6 with the profit earned at each level of labor usage. g. Do your answers to parts c and e maximize profit? Does it matter whether the manager chooses labor usage or chooses output to maximize profit? Why? h. How much labor should the manager hire when the wage rate is $195? How much profit is earned? Is marginal product greater or less than average product at this level of labor usage? Why does it matter? 10. Consider a price-taking firm that has total fixed cost of $750 and faces a market-determined price of $10 per unit for its output. The wage rate is $110 per unit of labor, the only variable input. Using the following table, answer the questions below. (1) -12) (3) (5) (6) (4) Marginal revenue product Units of labor Marginal product Marginal cost Output Profit 1 10 2 30 3 60 4 100 5 135 6 165 7 190 8 210 9 225 10 235 a. Fill in the blanks in column 3 of the table by computing the marginal product of labor for each level of labor usage. b. Fill in the blanks in column 4 of the table by computing the marginal revenue product for each level of labor usage. C. How much labor should the manager hire to maximize profit? Why? d. Fill in the blanks in column 5 of the table by computing marginal cost. e. How many units of output should the manager produce to maximize profit? Why? f. Fill in the blanks in column 6 with the profit earned at each level of labor usage. g. Do your answers to parts c and e maximize profit? Does it matter whether the manager chooses labor usage or chooses output to maximize profit? Why? h. How much labor should the manager hire when the wage rate is $195? How much profit is earned? Is marginal product greater or less than average product at this level of labor usage? Why does it matter