3.The following table contains the relationship between a number of trainers wor
ID: 1105027 • Letter: 3
Question
3.The following table contains the relationship between a number of trainers working at the new gym (Crossfit by Shawna) and how many clients they can train. These clients represent the output of trainers. Clients pay $40 per session Number of Trainers Clients Trained 10 50 80 100 110 115 4 a. Calculate the marginal product of labor (MPL) and the value of the marginal product of labor (VMPLMarginal Revenue Product) for each additional trainer hired, and record these numbers in columns in the MPPL and VMPL tables, which you need to create. b. Crossfit by Shawna's premier trainers earn $200 an hour. Calculate Marginal Profit for each additional trainer hired and record these numbers in the Marginal Profit table you create. Based on your calculations, How many trainers will the gym hire and why?Explanation / Answer
a. Marginal Product of labor(MPL)- the marginal product of labor (MPL) is the change in output that results from employing an added unit of labor.
MRP/VMPL(Marginal revenue of Product/labor)
(client pays $40)
115-110=5
b. As per the Marginal profit shown in the above table Crossfit by Shawna's premier trainers will make maximise profit by hiring 5 trainers as shown in the above table.
I.e- MRP>/ wages($200)
As per the table MRP should be always greater or equal to the wages paid to thelabor. In the above case Croossfit by Shawna's trainers earn $200 an hour. So till 5th trainer the MRP is equal or greater than the wages paid to them. So we can hire 5 trainers.
No.of Trainers Clients Trained(Output) MPPL(marginal Productivity of labor)MRP/VMPL(Marginal revenue of Product/labor)
(client pays $40)
1 10 50-10=40 40*40=1600 2 50 80-50=30 30*40=1200 3 80 100-80=20 20*40=800 4 100 110-100=10 10*40=400 5 110115-110=5
5*40=200 6 115 NA NARelated Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.