When I created the table, I assumed that the variable input costs $4.25 per unit and the output sells for $1.75 per unit.

Units of Input Units of Output (TPP) Total Total Revenue Input or Total Cost Value (TIC) Product (TVP) Average Marginal Marginal Marginal Physical Physical Value Input Product Product Product Cost (APP) (MPP) (MVP) (MIC) 0 0 0 0 0 XXX XXX XXX 2 6 10.5 8.5 3 3 5.25 4.25 4 15 26.25 17 3.75 4.5 7.88 4.25 6 22 38.5 25.5 3.67 3.5 6.13 4.25 8 27 47.25 34 3.38 2.5 4.38 4.25 10 31 54.25 42.5 3.1 2 3.5 4.25 12 34 59.5 51 2.83 1.5 2.63 4.25 14 36 63 59.5 2.57 1 1.75 4.25 16 37 64.75 68 2.31 0.5 0.88 4.25 18 36 63 76.5 2 -0.5 4.25 -0.88 20 34 59.5 85 4.25 1.7 -1.75 4) If the output sold for $1.25 per unit instead of $1.75 per unit, which column(s) in the table would have different values? 5) Between 6 and 8 units of input, each additional unit of input: a) Increases income by: $ (use the average; divide by 2). b) Increases cost by: $ (use the average, divide by 2). c) Increases profit by: $ (Use answers from a and b). 6) What is the profit-maximizing input level if the input price drops to $3.25 per unit and the output prices is still $1.75 per unit? 7) Assume that the input is avalable at no cost (e. free). a) What would the marginal input cost be? b) How much input should be used to maximize profit? I 8) Compute the level of profits (TVP-TIC) where a) TPP is a maximum b) APP is a maximum c) MPP is a maximum, 9) Plot the TPP curve on one graph and the APP and MPP curves on another graph based on the data in Part B of this exercise (Draw the TPP graph on top and the other graph on the bottom; like the Graphical Illustration in class). Label all curves and show the stages of production