Complete the following table.

a. Suppose the price of output is $10 per unit. What are the marginal physical product and the marginal revenue product of the sixth worker?

MPP = _____

MRP = _____

b. If the wage of each worker is $140 per day, should the sixth worker be hired? _____

c. Use the graph below to graph the Marginal Revenue Product and Wage Rate.

Transcribed Image Text:

Number of Workers 0 1 2 3 4 5 6 7 8 9 10 Units of Output 0 7 15 25 40 54 65 75 84 90 95 Marginal Physical Product Marginal Revenue Product Wage Marginal Revenue Product or Wage Rate (dollars per day) $240 220 20 0 6 Quantity (workers per day) 8 6 10 Number of Workers 0 1 2 3 4 5 6 7 8 9 10 Units of Output 0 7 15 25 40 54 65 75 84 90 95 Marginal Physical Product Marginal Revenue Product Wage Marginal Revenue Product or Wage Rate (dollars per day) $240 220 20 0 6 Quantity (workers per day) 8 6 10

Answer rating: 100% (QA)

a Number of workers Units of output MPP MRPMPPMR Wage TR10output ... View the full answer