Table 144 -Refer to Table 14

question 107

Essay

Table 14.4
$\begin{array}{|c|c|c|c|c|c|c|c|}\hline \begin{array}{l} \text { Number }\\ \text { of }\\ \text { Machines }\\\end{array}& \begin{array}{l} \text { Output }\\ \text { of }\\ \text { Pencils }\\ \text { (boxes }\\ \text { per }\\ \text { week)}\\\end{array} & \begin{array}{l} \text { Marginal }\\ \text { Product of }\\ \text { Capital }\\\end{array} & \begin{array}{l} \text { Product }\\ \text { Price }\\ \text { (dollars }\\ \text { per box) }\\\end{array} & \begin{array}{l} \text { Total }\\ \text { Revenue }\\\end{array} & \begin{array}{l} \text { Marginal }\\ \text { Revenue }\\ \text { Product of }\\ \text { Capital }\\\end{array} & \begin{array}{l} \text { Rental }\\ \text { Cost per }\\ \text { Machine }\\\end{array} & \begin{array}{l} \text {Additional }\\ \text { Profit from }\\ \text { Renting }\\ \text { One }\\ \text { Additional }\\ \text { Machine }\\\end{array} \\\hline L & Q & M P & P & T R & \text { MRP } & R \\\hline 0 & 0 & - & \$ 40 & & - & \$ 240 \\\hline 1 & 10 & & 40 & & & 240 \\\hline 2 & 18 & & 40 & & & 240 \\\hline 3 & 25 & & 40 & & & 240 \\\hline 4 & 31 & & 40 & & & 240 \\\hline 5 & 36 & & 40 & & & 240 \\\hline 6 & 40 & & 40 & & & 240 \\\hline\end{array}$
-Refer to Table 14.4.Dante owns a pencil factory and faces the situation shown in the table and the cost of renting a machine is $240 per week.
a.Fill in the blanks in the table and determine the profit-maximizing number of machines for Dante to rent.Explain why renting this number of machines is profit maximizing.
b.Draw Dante's demand curve for capital.

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Definitions:

Ancestors

Forebears or predecessors in a family's lineage, sometimes venerated or considered a source of guidance or tradition.

Political Enemies

Individuals or groups that are opposed to each other on ideological, policy-related, or governmental power grounds, typically within the context of politics.

Villa of Mysteries

An ancient Roman villa in Pompeii, famous for its well-preserved frescoes depicting Dionysian mysteries.

Dionysus

The god of wine, vegetation, festivity, and ecstasy in Greek mythology, associated with wild and ecstatic religious rites.