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Advice for a Firm. You've been hired as an economic consultant by a price-taking firm that produces scarves. The firm already has a factory, so it is operating in the short run. The price of scarves is $9, the cost per worker is $24, and each scarf requires $1 worth of material. The following table shows the relationship between the number of workers and the output of scarves.
a. Fill in the blanks in the table. (Enter all of your responses as integers.)
Workers
10
11
12
13
14
15
Output
5
29
41
47
50
52
Labor cost
$240
264
288288
312
336
360
Material cost
$5
4141
Fixed cost
$2
2
Total cost
$247
295
331331
361
388
414
Marginal cost
--
33
9
b. What is the profit-maximizing level of output?
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