The following table depicts the output of a firm that manufactures computer prin

Question

The following table depicts the output of a firm that manufactures computer printers. The printers sell for $100 each. Total Physical Output (printers per wee) 200 218 234 248 260 270 278 Labor Input (workers per week) 10 Marginal Physical Product Marginal Revenue Product 12 13 14 15 16 1,800 1,600 1,400 1,200 1,000 800 The weekly wage paid by computer printer manufacturers in a perfectly competitive market is $1,200 Using the information provided in the table above, how many workers will the profit-maximizing employer hire?workers. (Enter a numeric response using an integer.)

Explanation / Answer

Profit =Revenue-Cost

Marginal Revenue Product=Marginal Revenue* Price

Revenue

200*100=20000 similarly for other Physical output will be 21800, 23400, 24800,26000,27000,27800

Cost

10*1200=12000 similalry for other Labour input the Cost will be,13200,14400,15600,16800,18000,19200

Profit

8000,8600,9000,9200,9200,9000 & 8600

Hence Maximum Profit is $9200 and this will be achieved with minimum labour when employer hires 13 workers

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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