Fill in the table below. Qty of Labor Total Product Marginal Product Price Total
ID: 2442876 • Letter: F
Question
Fill in the table below.
Qty of Labor
Total Product
Marginal Product
Price
Total Revenue
MRP
Wage
0
0
-------------
7
0
---------------
140
1
40
7
280
140
2
90
7
630
140
3
150
7
1050
140
4
205
7
1365
140
5
235
7
1575
140
6
255
7
1715
140
7
265
7
1785
140
What is the profit maximization amount of labor?
Qty of Labor
Total Product
Marginal Product
Price
Total Revenue
MRP
Wage
0
0
-------------
7
0
---------------
140
1
40
7
280
140
2
90
7
630
140
3
150
7
1050
140
4
205
7
1365
140
5
235
7
1575
140
6
255
7
1715
140
7
265
7
1785
140
Explanation / Answer
First note that total revenue is the product of total product and price and the same is corrected below. Also marginal product is change in total product / change in labor unit. Marginal revenue product is the product of marginal product and price.
Profit maximization amount of labor is the one where MRP = wage rate. This occurs where 6 units of labor are used. Hence, the profit maximization amount of labor is 6 units
Qty of Labor Total Product Marginal Product Price Total Revenue MRP Wage 0 0 7 0 140 1 40 40 7 280 280 140 2 90 50 7 630 350 140 3 150 60 7 1050 420 140 4 205 55 7 1435 385 140 5 235 30 7 1645 210 140 6 255 20 7 1785 140 140 7 265 10 7 1855 70 140Related Questions
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