1 2 3 4 5 6 units of quantity of product price total

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(1)(2)(3)(4)(5)(6)Units ofQuantity ofProduct Price =TotalFactor XOutputMPPXMarginal RevenueRevenueMRPX0150$ 8FL124A8GM232B8HN339C8IO445D8JP550E8KQ0
2.If the price of a factor is constant at $48, how many units of the factor will thefirm buy?
3.On the same diagram draw the VMP curve and the MRP curve for anoligopolist.Explain why the curves look the way you draw them.
4.Explain why the factor supply curve is horizontal for a factor price taker.
5.Look at the two factor demand curves for the following figure.Is the price ofthe product that labor goes to produce higher for MRP2than for MRP1? Explainyour answer.
264Chapter 26However, if we drop the assumption of a constant MPP, it could be that price isconstant and MPP is higher along MRP2.
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Term
Fall
Professor
Richard

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