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Question

1. With which worker do you first experience diminishing returns to labor?

2. What is the profit maximizing level of output (How many lawns will you cut)?

3. How much profit will you make at the best output level?

4. Using the marginal cost column: At what price for lawn service would the entrepreneur be

willing to hire the 11th and 12th workers and expand production to 240 customers?

Fig: 1