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Question
The table below shows a firm's output per day for zero through six workers.Q L
0 0
46 1
84 2
114 3
136 4
150 5
156 6
The firm's demand and marginal revenue curves are:
P = 50 - 0.125Q MR = 50 - 0.25Q,
where Q = daily sales, and P = output price.
a. Determine the marginal product of labor for one through six workers.
b. Determine the firm's marginal revenue product.
c. How many workers should the firm hire if total wage costs including fringe benefits are $30 per hour? (Each worker is employed for eight hours per day.)
Answer
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Scenario 14.4:
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Use the following statements to answer this question:
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Q:
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Q:
The marginal revenue product can be expressed as the
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D) average physical product of the input times the marginal revenue received from the sale of the final product.