Suppose a firm's short-run total product schedule is given in the table below. It sells its output
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Suppose a firm's short-run total product schedule is given in the table below. It sells its output in a competitive market for $1.50 per unit.
| Labor | Total Product | Marginal Product | Marginal Revenue Product |
| 0 | 0 | ||
| 1 | 8 | ||
| 2 | 18 | ||
| 3 | 29 | ||
| 4 | 39 | ||
| 5 | 47 | ||
| 6 | 52 | ||
| 7 | 53 | ||
| 8 | 53 |
A) What is the marginal product of the first worker?
B) What is the marginal revenue product of the first worker?
C) Complete the rest of the table. How many workers will this firm hire at a wage of $7?
D) If the wage rises to $9, how will the firm adjust its employment?
Expert Answer:
A The marginal product of labor is the additional output produced by adding one more unit of labor T... View the full answer
Related Book For 
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
Posted Date:
