Consider a company operating in a perfectly competitive market. It sells its output for $20 a unit
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Question:
Consider a company operating in a perfectly competitive market. It sells its output for $20 a unit and pays its workers $160 daily. The following table shows the marginal productivity of each worker. Fill the empty columns.
Number of workers | Marginal productivity (number of units per day) | Marginal Revenue of Product of labour ($ per day) | Marginal Resource Cost (MRC) | Hire / Do not hire | Reason to hire or not hiring |
0 | |||||
1 | 16 | ||||
2 | 13 | ||||
3 | 10 | ||||
4 | 9 | ||||
5 | 7 | ||||
6 | 4 |
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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