2. The following table provides information about Pottery Inc. The wage rate per worker per hour is $10 and the cost of machine per hour is $20 per hour. Using the given information complete the table. Output (Pots produced per hour) 20 Number Number Marginal Product of Cost of Cost of Total of of Workers Machines Cost Workers Machines Labor 1 2 2 2 40 3 2 55 4 2 65 2 70 6. 72 If Pottery Inc. produces at a rate of 70 pots per hour and operates 8 hours per day, what is Pottery Inc.'s total labor cost per day? b. Suppose Pottery Inc. operates in a perfectly competitive market. If the price of a pot is $2, find out the profit maximizing output and economic profit. a.

2. The following table provides information about Pottery Inc. The wage rate per worker per hour is $10 and the cost of machine per hour is $20 per hour. Using the given information complete the table. Output (Pots produced per hour) 20 Number Number Marginal Product of Cost of Cost of Total of of Workers Machines Cost Workers Machines Labor 1 2 2 2 40 3 2 55 4 2 65 2 70 6. 72 If Pottery Inc. produces at a rate of 70 pots per hour and operates 8 hours per day, what is Pottery Inc.'s total labor cost per day? b. Suppose Pottery Inc. operates in a perfectly competitive market. If the price of a pot is $2, find out the profit maximizing output and economic profit. a.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

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