Question

The table below shows the number of total products produced by its corresponding number of laborers employed. Assume that each laborer receives P550 as a wage and the firm pays P700 rental fee for the equipment it uses. Number of Laborers | Number of Total Products Produced ------------------ | --------------------------------- 24 | 64 116 | 176 220 | 10 240 | 12 248 | 14 A. If the firm wants to minimize the cost per unit of production, how many units of output must it produce? B. If the product is sold for P26, should the seller still continue production? If yes, how many units of output? Justify your answer. C. At what price will the firm decide to shut down in the short run?

          The table below shows the number of total products produced by its corresponding number of laborers employed. Assume that each laborer receives P550 as a wage and the firm pays P700 rental fee for the equipment it uses.

Number of Laborers | Number of Total Products Produced
------------------ | ---------------------------------
        24         |               64
        116        |               176
        220        |               10
        240        |               12
        248        |               14

A. If the firm wants to minimize the cost per unit of production, how many units of output must it produce?
B. If the product is sold for P26, should the seller still continue production? If yes, how many units of output? Justify your answer.
C. At what price will the firm decide to shut down in the short run?

Added by Tony N.

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