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Chapter 28: Q.17 (page 647)

Based on the information in Problem 28-16, if the firm considered in Figure 28-1 were to employ 14 units of labor, what would be the resulting marginal revenue product of the 14 th unit of labor hired?

Short Answer

Expert verified

The resulting marginal revenue product is $750

Step by step solution

01

Given Information

The marginal product of information, say work, is characterized as the additional result that outcomes from adding one unit of the contribution to the current blend of useful elements.

02

Explanation

Calculating the marginal product,

MP=螖TP螖L

MP=4075鈭�39251=150

Marginal revenue product =

MRP=MR脳MP

MRP=P脳MP

MRP=$5脳150=$750

Hence, The resulting marginal revenue product is$750

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Most popular questions from this chapter

28-8. A firm hires labor in a perfectly competitive labor market. Its current profit-maximizing hourly output is 100units, which the firm sells at a price of \(5per unit. The marginal produce of the last unit of labor employed is 5units per hour. The firm pays each worker an hourly wage of \)15.

a. What marginal revenue does the firm earn, from the sale of the output produced by the last worker employed?

b. Does this firm sell its output in a perfectly competitive market?

The current wage rate is \(10, and the rental rate of capital is \)500. A firm's marginal product of labor is 200, and its marginal product of capital is 20,000 . Is the firm maximizing profits for the given cost outlay? Why or why not?

The current market wage rate is \(10, the rental rate of land is \)1,000per unit, and the rental rate of capital is $500. Production managers at a firm find that under their current allocation of factors of production, the marginal product of labor is 100, the marginal product of land is 10,000, and the marginal product of capital is 4,000. Is the firm minimizing costs? Why or why not?

If more firms were to find ways to induce larger numbers of workers to hold true to labor supply commitments, would the market labor supply curve tend to shift to the left or to the right? Explain your reasoning.

The following table depicts the output of a firm that manufactures computer printers. The printers sell for $100each.

Calculate the marginal product and marginal revenue product at each input level above 10units.
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