Doctor Smartphone refurbishes smartphones at a constant price of $30 per phone. The shop can hire as much labor as it wants at a constant cost of $300 per day. Below is a table showing the total product of labor and marginal product of labor. a) Calculate total revenue, marginal revenue, total cost, and marginal labor cost for each level of output. Instructions: Enter your responses as whole numbers.

b) How many workers should Doctor Smartphone hire to maximize profits? workers

Transcribed Image Text:

Number of workers 1 2 3 4 5 Total Product 24 42 54 64 72 Marginal Product Total Revenue $ $ $ $ $ Marginal Revenue $ $ $ $ $ $ $ $ $ $ Total Cost Marginal Labor Cost $ $ $ $ $ Number of workers 1 2 3 4 5 Total Product 24 42 54 64 72 Marginal Product Total Revenue $ $ $ $ $ Marginal Revenue $ $ $ $ $ $ $ $ $ $ Total Cost Marginal Labor Cost $ $ $ $ $

Answer rating: 100% (QA)

a L TP MP TR MR TC MLC 1 24 24 720 30 300 125 2 42 18 1260 ... View the full answer