Suppose, due to a technological innovation, the marginal product of each worker rises by two. At the same time, due to tight labor markets, the wages that you must pay rise to $120 per day. Additionally, preferences for your product rise and thus prices rise to $5.00. Given these new conditions, on a piece of scrap paper, fill in a table like the following. The current wage is $120 and the price of output (Q) is equal to $5.00.
NOTE: You will not need to submit this table, but it will help you answer the following THREE questions.
|L||Q||MPL||MRP||Marginal Profit||Total Profit|