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You are an economic consultant and encounter a firm with the following data:
Quantity of Labor
Fixed Costs
Variable Costs
Total Costs
Quantity
Marginal Costs
5
$150
20
6
28
7
34
8
38
The wage rate is $8 per unit. Fill in the rest of the table.
The price-quantity combination is as follows:
Fill in the rest of the table
Price
TR
MR
$10.50
$9.24
$7.87
$6.33
What is the profit-maximizing price and quantity and what is the profit at that point?
Does this goal still apply to our understanding of the role of the business firm in society? Provide examples to support your understanding. Does government or society have a role to play in expanding the Friedman discussion?
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