Study Guide

Practice #1:

1. Utilize the graph to answer the question that follows:

Quantity of Labor| MP of Labor Quantity of Capital|MP of Capital 30 50 25 40 3 20 3 35 4 15 15 5 10 5\f\fMarket Firm Price of Output Quantity Supplied of Output Quantity Demanded of Output Quantity of Labor Total Product $5 25,000 60,000 0 0 $10 50,000 50,000 15 105 $15 75,000 40,000 30 190 $20 100,000 30,000 45 265 $25 125,000 20,000 60 325\f\f