Adam operates a pin factory. Suppose Adam faces the situation shown in the table below and the cost of renting a machine is
$550 per week.
(3)
(6)
(8)
Marginal
(4) (5)
Marginal Revenue
(7)
Additional Profit from
(1) Number
(2)
Product of Product
Total
Product
Rental Cost Renting One Additional
of Machines Output
Capital
Price Revenue
of Capital
per Machine
Machine
0
0
—
$ 100
0
$550
1
12
12
100
$ 1,200
$ 1,200
550
$650
2
21
9
100
2,100
900
550
350
3
28
7
100
(i)
700
550
150
4
34
6
100
3,400
(ii)
550
50
5
39
5
100
3,900
500
550
(iv)
6
43
4
100
4,300
400
550
? 150
Fill in the missing values (i, ii, iii, iv) blanks in the table and determine the profit-maximizing number of machines for Adam to rent
(enter all values as integers, include a minus sign when necessary).
