The table below presents estimates of the maximum levels of output possible with various combination of two inputs.
Capital (K)
5 11 25 37 47 51
4 10 23 33 41 44
3 8 18 25 30 34
2 5 11 16 20 22
1 1 4 8 10 11
1 2 3 4 5
Labor (L)
Assume that a unit of output sells for $2 and that the firm currently employs two units of capital (K = 2).:
Q1. What is the marginal product of labor when L = 4?
Q2. What is the average product of labor when L = 4?
Q3. What is the marginal revenue product of labor when L = 4?
Q4. If the wage rate of labor is $10, how many units of labor should the firm hire and how many units of output should it produce?