Problem: The table below illustrates a competitive firm's short run production function. labor is the firms only variable input, and market price for the firms product is $2 per unit
units of labor units of output
3 370
4 490
5 570
6 600
7 620
Question 1. How much does the 5th unit of labor add to the firms total revenue?
Question 2. If the wage rate is $200, how many units of labor will the firm employ?
Question 3. If the wage rate is $200,the firm should..........?
Question 4. If market price for the firms product increases to $5 how many units of labor will the firm employ at the wage rate of $200?