The Table Below Presents Estimates of the Maximum Levels of Output

Essay

The table below presents estimates of the maximum levels of output possible with various combinations of two inputs.
$$\begin{array}{l}\text { Capital (K) }\\\begin{array} { r r r c r r } \mathbf { 5 } & 11 & 25 & 37 & 47 & 51 \\\mathbf { 4 } & 10 & 23 & 33 & 41 & 44 \\\mathbf { 3 } & 8 & 18 & 25 & 30 & 34 \\\mathbf { 2 } & 5 & 11 & 16 & 20 & 22 \\\mathbf { 1 } & 1 & 4 & 8 & 10 & 11 \\& \mathbf { 1 } & \mathbf { 2 } & \mathbf { 3 } & \mathbf { 4 } & \mathbf { 5 } \\& & & \text { Labor } ( L ) & &\end{array}\end{array}$$ Assume that a unit of output sells for $3 and that the firm currently employs 3 units of capital (K = 3).
(i)What is the marginal product of labor when L = 4?
(ii)What is the average product of labor when L = 4?
(iii)What is the marginal revenue product of labor when L = 4? What is the output elasticity of labor when L = 4?
(iv)
If the wage rate of labor is $12, how many units of labor should the firm hire and how many units of output should it produce?