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QUESTION 13 A perfectly competitive firm produces digital devices using capital and labor. The wage rate is $16, the rental cost of capital is $16, and the price of digital devices is $20. Suppose that the cost-minimizing way to produce 20 digital devices is to use 285.6 units of labor and 420 units of capital. The total revenue from producing 20 digital devices is $272,400, the total cost of production is $272,400, and the profits of the firm are $285.6. QUESTION 14 A perfectly competitive firm produces digital devices using capital and labor. The wage rate is $10, the rental cost of capital is $10, and the price of digital devices is $520. Suppose that the cost-minimizing way to produce digital devices is to use 2.2 units of labor and 2.2 units of capital. The total revenue from producing digital devices is $176, the total cost of production is $220, and the profits of the firm are $176.

          QUESTION 13
A perfectly competitive firm produces digital devices using capital and labor. The wage rate is $16, the rental cost of capital is $16, and the price of digital devices is $20. Suppose that the cost-minimizing way to produce 20 digital devices is to use 285.6 units of labor and 420 units of capital. The total revenue from producing 20 digital devices is $272,400, the total cost of production is $272,400, and the profits of the firm are $285.6.

QUESTION 14
A perfectly competitive firm produces digital devices using capital and labor. The wage rate is $10, the rental cost of capital is $10, and the price of digital devices is $520. Suppose that the cost-minimizing way to produce digital devices is to use 2.2 units of labor and 2.2 units of capital. The total revenue from producing digital devices is $176, the total cost of production is $220, and the profits of the firm are $176.

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