Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 1

Assume that the firm shown in the following table produces output using one fixed input and one variable input.
a. Complete this table and use it to find this firm's short-run profit-maximizing quantity of output. How much profit will this firm earn?
b. Redo the table and find the profit-maximizing quantity of output,if the price of the firm's fixed input rose from $5 to $10. How much profit will this firm earn now?
c. Now redo the original table and find the profit-maximizing quantity of output,if the price of the firm's variable input rose so that MC increased by $20 at each level of output. How much profit will this firm earn in this case?