ation below to answer questions 4 and 5. turing produces widgets and sells them

Question

ation below to answer questions 4 and 5. turing produces widgets and sells them in a perfectly competitive market for $2 hires workers in a perfectly competitive labor market for $75 per day. ABC' anufacturing produc each. The firm w enduction function is given in the chart below Labor Output Per Day 0 2 4 24t0 240 10 420 11 53050 580 2 600 4. The marginal product (MP) of the second worker is units of output, and the value of the marginal product (VMP) of the second worker is $ a. 180; 90 210;420 d 210; 105 180; 360 To maximize profit, ABC Manufacturing should hire: a. 2 workers. e4 workers. 5 workers. b. 3 workers. anter 15 Assignments

Explanation / Answer

Ans)

4.

b. 180;360

5.

c. 4 workers

Labor Output per day Marginal Product=TPn-TPn-1 Price VMP=MP*Price Wage 0 0 1 240 240 2 480 75 2 420 180 2 360 75 3 530 110 2 220 75 4 580 50 2 100 75 5 600 20 2 40 75

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.