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Question: the table below provides the production function for dannys deliveries...

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The table below provides the production function for Danny’s Deliveries, a bicycle delivery service in an urban area. Danny’s operates in a perfectly competitive market and charges $20per delivery. Employees are equally proficient at riding a bicycle, and Danny is able to hire as many constant-quality (equally productive) delivery persons at the going market wage rate as he wants. Assume labor is the only variable input,Danny has fixed costs of $50per day, and Danny’s goal is to maximize profit.

TC TVC+TFC Profit MPL = AQ/AL MRPL VMPL TVC- Lx W #workers | Output/Day 20 30 4 40 38 Complete the table and fill in the blanks for numbers 1 -3 below assuming that the wage rate is $80 per day worker. Diminishing returns to labor set in when Danny hires the 2 Danny is hiring workers in a labor market that is 3.Applying the profit-maximizing hiring rule, Danny hires Fill in the blanks for numbers 4 - 6 below assuming that the wage rate increases to $100 per day 4.According to the profit-maximizing hiring rule, Danny should hire workers. workers his TC = and his profit- Dannys TR workers If Danny has fixed costs of $75 instead of S50 per day, he should hire

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