Production data for Bob's Bicycle Factory are as follows:
Number of workersBikes assembled per day
1………………………………..10
2………………………………..18
3………………………………..24
4………………………………..28
5………………………………..30
Other than wages, Bob has costs of $100 (for parts and so on) for each bike assembled.
a. Bikes sell for $130 each. Find the marginal product and the value of the marginal product for each worker (don't forget about Bob's cost for parts).
b. Make a table showing Bob's demand curve for labor.
c. Repeat part b for the case in which bikes sell for $140 each.
d. Repeat part b for the case in which worker productivity increases by 50 per¬cent. Bikes sell for $130 each.