3. This table provides some information about hourly output and revenue for a firm in a...

 

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3. This table provides some information about hourly output and revenue for a firm in a competitive market. Each factor of production (L) in the table represents one worker. For example, a total of 3 workers produce a total of 18 units per hour. Using the data provided: a. Complete the table. b. Using the data from the table construct the MRP and the MRC curves at an MRC (wage) of $20.00 per hour with MRP and MRC on the vertical and FPs on the horizontal axis. How many laborers (FPS) would be employed at $20.00 per hour? Why? c. If the employer had to increase the hourly rate by $5.00, how many laborers (FPS) would be employed? Why? P 4 4 Q 0 7 13 18 TR 0 28 88 MR 4 MP 7 MRP 24 FP (L) 0 1 2 3 st 4 3. This table provides some information about hourly output and revenue for a firm in a competitive market. Each factor of production (L) in the table represents one worker. For example, a total of 3 workers produce a total of 18 units per hour. Using the data provided: a. Complete the table. b. Using the data from the table construct the MRP and the MRC curves at an MRC (wage) of $20.00 per hour with MRP and MRC on the vertical and FPs on the horizontal axis. How many laborers (FPS) would be employed at $20.00 per hour? Why? c. If the employer had to increase the hourly rate by $5.00, how many laborers (FPS) would be employed? Why? P 4 4 Q 0 7 13 18 TR 0 28 88 MR 4 MP 7 MRP 24 FP (L) 0 1 2 3 st 4