Practice Problem 1. The following table reports the marginal product of the first 16 workers a tomato grower could hire, that is, it tells us how many extra tomatoes each worker could grow. The tomato grower has monthly fixed costs of $50. The monthly wage of each worker is also $50. The tomato grower participates in a perfectly competitive market where there are currently 1000 identical growers. They sell boxes of tomatoes which contain 1500 tomatoes each and currently the market price of these boxes is $200.
Worker
MP
1
400
9
500
2
10
3
600
11
350
4
700
12
300
5
800
13
275
6
14
250
7
15
225
8
16
100
Task 1.1: Use the information provided to fill the following table.
# workers needed
TFC
TVC
TC
MC
MR
0
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