Question: Table 12-4 shows the basic numbers for production of pizzas, holding other factors constant. a. Fill in the blanks in columns (3) and (5). b.

Table 12-4 shows the basic numbers for production of pizzas, holding other factors constant.

Marginal Revenue Product (1) (2) (3) Marginal product of labor (pizzas per

a. Fill in the blanks in columns (3) and (5).

b. Construct a diagram like that in Figure 12-3 which shows the marginal revenue product of pizza workers and labor inputs.

worker) (4) (5) Marginal revenue product of labor ($ per worker) Total

c. If the wage of pizza workers is $30 per worker, how many workers will be employed?

Marginal Revenue Product (1) (2) (3) Marginal product of labor (pizzas per worker) (4) (5) Marginal revenue product of labor ($ per worker) Total product (pizzas) Price of output ($ per pizza) Unit of labor (workers) 1 30 2 50 3 60 4 65 68 68 TABLE 12-4.

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