You have the following data collected on the production possibilities at your firm: Total Output (Q)...

  

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You have the following data collected on the production possibilities at your firm: Total Output (Q) Workers Employed (L) 0 1 2 5 6 9 10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 93.11 100.24 0.00 20.00 32.49 43.15 52.78 61.70 70.10 40.00 53.13 64.98 75.97 86.31 85.79 97.47 108.58 24.62 114.63 123.41 0.00 27.81 45.17 60.00 73.39 119.21 129.46 139.37 0.00 30.31 49.25 65.41 80.00 93.52 106.26 118.36 129.96 141.13 151.93 0.00 32.41 52.66 69.94 85.54 0.00 34.24 55.62 73.87 90.35 100.00 113.61 126.56 138.96 150.90 162.45 105.62 120.00 133.67 146.77 159.38 171.58 110.62 125.68 140.00 153.72 166.93 179.70 0.00 35.86 58.25 77.36 94.62 0.00 37.32 60.63 80.53 98.49 115.14 0.00 130.82 145.72 160.00 173.75 187.05 38.66 62.81 83.42 102.03 119.28 135.52 150.96 165.75 180.00 193.78 64.83 86.10 105.31 123.11 139.87 155.81 171.08 185.78 200.00 0.00 39.91 Machines (K) 0 1 2 3 4 5 6 7 8 9 10 3 0.00 4 0.00 7 8 0.00 0.00 85.74 78.09 96.14 105.56 a. Suppose you have to make production decisions over the next 6 months and the number of machines you currently have on hand is 6. Produce a table with the number of workers in the first column that shows the average and marginal products of labor under these conditions. b. If your product is currently selling for $6 per unit add a column to the table for part a for the marginal revenue product of labor. c. If you are a profit maximizer and the total cost per unit of labor employed is $100 per unit, how many units of labor will you employ and what will you earn in profits in the short run? d. How would your answer to part c change if you had 8 machines to work with rather than 6? You must be specific and demonstrate how you reached your new conclusion. You have the following data collected on the production possibilities at your firm: Total Output (Q) Workers Employed (L) 0 1 2 5 6 9 10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 93.11 100.24 0.00 20.00 32.49 43.15 52.78 61.70 70.10 40.00 53.13 64.98 75.97 86.31 85.79 97.47 108.58 24.62 114.63 123.41 0.00 27.81 45.17 60.00 73.39 119.21 129.46 139.37 0.00 30.31 49.25 65.41 80.00 93.52 106.26 118.36 129.96 141.13 151.93 0.00 32.41 52.66 69.94 85.54 0.00 34.24 55.62 73.87 90.35 100.00 113.61 126.56 138.96 150.90 162.45 105.62 120.00 133.67 146.77 159.38 171.58 110.62 125.68 140.00 153.72 166.93 179.70 0.00 35.86 58.25 77.36 94.62 0.00 37.32 60.63 80.53 98.49 115.14 0.00 130.82 145.72 160.00 173.75 187.05 38.66 62.81 83.42 102.03 119.28 135.52 150.96 165.75 180.00 193.78 64.83 86.10 105.31 123.11 139.87 155.81 171.08 185.78 200.00 0.00 39.91 Machines (K) 0 1 2 3 4 5 6 7 8 9 10 3 0.00 4 0.00 7 8 0.00 0.00 85.74 78.09 96.14 105.56 a. Suppose you have to make production decisions over the next 6 months and the number of machines you currently have on hand is 6. Produce a table with the number of workers in the first column that shows the average and marginal products of labor under these conditions. b. If your product is currently selling for $6 per unit add a column to the table for part a for the marginal revenue product of labor. c. If you are a profit maximizer and the total cost per unit of labor employed is $100 per unit, how many units of labor will you employ and what will you earn in profits in the short run? d. How would your answer to part c change if you had 8 machines to work with rather than 6? You must be specific and demonstrate how you reached your new conclusion.

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b To calculate the marginal revenue product of labor ... View the full answer