46T he table below shows the short-run production function for Phyliss's Carpentry Contractors. Number of Carpenters Total Product per Hour 1 200 2 255 3 305 4 345 380 6. 410 7 435 8. 455 (a) Beginning with which carpenter do diminishing marginal returns set in for Phyliss's Carpentry Contractors? Explain using numbers. (b) Assume Phyliss's Carpentry Contractors sells its carpentry services in a perfectly competitive market at a price of $2. Calculate the marginal revenue product of the fifth carpenter. Show your work. (c) Phyliss's Carpentry Contractors hires carpenters in a perfectly competitive labor market for carpenters at a wage rate of $90 per hour, and the market price of services remains $2. How many carpenters will Phyliss's Carpentry Contractors hire to maximize its profit? Explain using marginal analysis.
46T he table below shows the short-run production function for Phyliss's Carpentry Contractors. Number of Carpenters Total Product per Hour 1 200 2 255 3 305 4 345 380 6. 410 7 435 8. 455 (a) Beginning with which carpenter do diminishing marginal returns set in for Phyliss's Carpentry Contractors? Explain using numbers. (b) Assume Phyliss's Carpentry Contractors sells its carpentry services in a perfectly competitive market at a price of $2. Calculate the marginal revenue product of the fifth carpenter. Show your work. (c) Phyliss's Carpentry Contractors hires carpenters in a perfectly competitive labor market for carpenters at a wage rate of $90 per hour, and the market price of services remains $2. How many carpenters will Phyliss's Carpentry Contractors hire to maximize its profit? Explain using marginal analysis.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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