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Unformatted text preview: Why? (State the key condition used in your analysis and show all work in the table above.) (c) Now assume that each worker's wage drops to $30 per day. What is the new profit maximizing total output? How many workers are hired at this level? Why? (d) As a result of the input cost decrease specified in part (c), have profits risen or fallen? By how much have profits changed ? TP (pairs) MP Total Value Product Total Input Cost Total Profit MVP MC Marginal Profit 0 0 1 5 2 15 3 20 4 23 5 24 6 23...
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- Fall '09