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Question
Trisha's Fashion Boutique production function for dresses is y(K, L) = K1/2L1/3, where K is the number of sewing machines and L is the amount of labor hours employed. Trisha pays $15 per labor hour and sells each dress for $87.50. Also, Trisha currently has 4 sewing machines. Fill in the table below. How many units of labor will Trisha employ before the value of the marginal product of labor is less than the cost of a labor hour?| y | L | MPL =  |
$87.50(MPL) |
| 1 | |||
| 20 | |||
| 40 | |||
| 60 | |||
| 80 |
Answer
This answer is hidden. It contains 293 characters.
Related questions
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Q:
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Q:
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Q:
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Q:
Scenario 14.4:
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L = PL -5 MEL = 2L + 5
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B) Marginal revenue product of labor
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Q:
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Q:
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Use the following statements to answer this question:
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Q:
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Q:
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Q:
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Q:
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B) an increase in labor employment and an increase in the wage rate.
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Q:
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Q:
If leisure is a normal good, then the income effect of a decrease in wage will
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Q:
The marginal revenue product can be expressed as the
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B) increment to revenue received from one additional unit of input hired.
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D) average physical product of the input times the marginal revenue received from the sale of the final product.