Please answer the separate two-part questions attached. A competitive firm should keep hiring as long as the value of the marginal product is:greater than or equal to the marginal product.greater than or equal to the marginal revenue.O less than or equal to the marginal cost.O greater than or equal to the marginal cost. Melissa let Jill cheat off of her during a history exam last week. Now Melissa is threatening to tell on Jill unless Jill pays her $50. Usethe decision tree below to determine the likely outcome of this situation.ResultTellM: expelledJ: expelledРayMelissaM: $50Don't tellJ:-$50JillTellM: expelledJ: expelledDon't payMelissaM: 0Don't tellJ: 0O Jill will pay Melissa to keep her quiet and Melissa does not tell.O Jill will pay Melissa to keep her quiet and Melissa will still tell.O ill will not pay Melissa to keep her quiet and Melissa does not tell.O Jill will not pay Melissa to keep her quiet and Melissa does tell.

In economics, the marginal product of labor (MPL) is the change in output that results from…

A competitive firm should keep hiring as long as the value of the marginal product is: greater than or equal to the marginal product. greater than or equal to the marginal revenue. O less than or equal to the marginal cost. O greater than or equal to the marginal cost.

A competitive firm should keep hiring as long as the value of the marginal product is: greater than or equal to the marginal product. greater than or equal to the marginal revenue. O less than or equal to the marginal cost. O greater than or equal to the marginal cost.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 2CQQ

See similar textbooks

Related questions

Q: erive the labor hiring rule for a profit maximizer firm in the short-run and give a graphical…

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

Q: QUESTION 6 When the marginal revenue product of labor (MRPL) is greater than the wage (W) then: O A…

A: The marginal revenue product of labor (MRPL) is the incremental revenue that is received by the firm…

Q: Complete the following labor supply table for a firm hiring labor competitively: Show graphically…

A: The labor supply curve represents the units of workers who are willing and able to work at different…

Q: A firm will be better off by hiring an additional worker only when: O The overall benefit is greater…

A: Profit maximisation is the ultimate goal of firms operating in the market. Hiring decisions depend…

Q: The firm aims at maximizing its profits in the short run. The wage level is w=140. The production…

A: L P Q MPL 0 5 0 - 1 5 58 58 2 5 112 54 3 5 162 50 4 5 208 46 5 5 250 42 6 5 288 38 7…

Q: In this problem a firm's production function depends only on labor, L: outp equals (L – aL²). The…

A: Given:

Q: QUESTION 10 Marginal product is: O B. the increase in total output attributable to the employment of…

A: In a market, the term marginal is significantly used by the firms andd policymakers because marginal…

Q: Why does the labour demand curve slope downwards?

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Quantity of Marginal Product Marginal Revenue Product Labor 2611 1 20 $40 14 28 3 12 24 4 8 16 6. 12…

A: MRP or Marginal Revenue Product is the increase in the revenue due to the hiring of an additional…

Q: 24 A competitive firm will hire inputs up to the point where: a. The price of the-input equals îts…

A: The motive of a competitive firm is to maximize profits.

Q: XYZ Co. operates in a competitive market. Its marginal product of labor is 1/L, and it takes the…

A: A perfectly competitive firm demands labor at the following point in the short run. MPL = W/P Where…

Q: A profit-maximizing firm will continue to hire workers until O A. the marginal product equals the…

A: Marginal Product(MP) is an extra output by adding a one unit of input in the existing factors. Wage…

Q: A firm's demand for labor will increase if the O marginal product of labor decreases. O price of the…

A: A firms demand for labor depends on various factors like :- 1) marginal productivity of the labour…

Q: The firm aims at maximizing its profits in the short run. The wage level is w=140. The production…

A: Labor Price of Output Output MPL MRP Wage 0 5 0 0 0 140 1 5 58 58 290 140 2 5 112 54 270 140…

Q: Employment Total Product Product Price $ 4 1 12 4 22 4 3. 30 4. 4. 36 4 5. 40 4 6. 42 Refer to the…

A: In the mentioned question we have been asked how many employees will the firm hire. Given, cost =…

Q: When the price of a firm's good or service falls, then the firm's demand curve for labor will shift…

A: Derived demand, depending on labor productivity, the firm's earnings, demand for firms' services and…

Q: MC Qu. 16-35 (Algo) Refer to the given table... Total Product Employnent Product Price $ 5 12 5. 22…

A: Total Cost = Employment * Wage Total Revenue = Total product * Product price Profit = Total Revenue…

Q: Suppose that employment processes change so that more human capital is required for a given task.…

A: In a market, firms make changes in their business and economics activities due to which the…

Q: a) Why does the labour demand curve slope downwards?

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…

Q: 6. Suppose the hourly wage is $40, the price of each unit of capital is $50, and the price of output…

A: Note: There are multiple sub parts of the given question, therefore we shall answer only the first…

Q: Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price of output is…

A: The production function is, f(E, K) = E 1/2K 1/2 The marginal product of labour is, MPE = (1/2)(K/E)…

Q: A sub-optimal employment policy is indicated if the marginal product of a costly input is: a.…

A: The effectiveness of the employment policy is indicated by the marginal product of the input.

Q: 13. At its current employment level of labor and capital, a firm observes the following. Marginal…

A: A firm maximises profit or minimises cost at a point where marginal rate of technical substitution…

Q: l decreae firm uses both labor and capital to produce 25 units of output. The marginal product of…

A: The two inputs are used here, labor and capital. The marginal product of labor (MPL) = 100 The…

Q: If the marginal product of labor increases because of a technological advancement, it will likely…

A: If the marginal product of labor increases because of a technological advancement then it will…

Q: Which of the following statements is true with regards to the law of diminishing marginal returns…

A: The labor market in the economy determines the equilibrium wage rate and equilibrium employment…

Q: Why does the labour demand curve slope downwards?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: When the marginal revenue product of labor (MRPL) is greater than the wage (W) then: A. The firm…

A: The marginal product of labor is the change in revenue resulting from an additional unit of labor.…

Q: A firm's demand curve for labor is its O marginal revemue curve O marginal product curve O marginal…

A: The firm’s labor demand curve is downward sloping as the firms are willing to pay less wages for…

Q: A. Consider a fırm who sells output at p=10 and has a short run production function Q(L)=20L-L². It…

A: The worth of a labor according to market is called as the value of marginal product of labor. It is…

Q: The demand curve for a factor of production will be O A. perfectly elastic if the factor is unique…

A: Assuming it's not difficult to track down a substitute item when the cost of an item builds, the…

Q: Suppose the hourly wage is $25, the price of each unit of capital i $50, and the price of output is…

A: Given information: Q = (EK)0.5 Wage rate (w) = $25 Cost of capital (r) = $50 Price of output (P) =…

Q: Total Output Per Day Price of Good 10 $ 15 14 14 19 13 23 12 6 27 11 7 31 10 A firm's labor input,…

A: Profit maximisation is the ultimate goal of firms. The firm will hire labor where profit is…

Q: (a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function…

A: (a) Labor(L) demand(dd) curve slopes-downward because its shows a negative-relationship between…

Q: What is one explanation for why this labor supply curve is upward sloping? O Firms are willing to…

A: The measure that depicts various quantities of labor being supplied at different price levels is…

Q: Marginal product is: O A. the increase in total revenue attributable to the employment of one more…

A: Marginal product is part of marginal analysis.

Q: erive the labor hiring rule for a profit maximizer firm in the short-run and give a graphical…

A: Short-run is a brief amount of time, and the firm cannot adjust for capital (K). The only thing…

Q: average produc

A: The output per unit of inputs of variable factors depicts the average product (AP). The additional…

Q: Complete the labor demand table for a firm that is hiring labor competitively and selling its…

A: Marginal revenue refers to the additional revenue that obtained by producing or selling one more…

Q: viatnematically prove that a profit maximizing and competitive firm employs labor upto che point…

A: Marginal product of labour is equal to the real wage, where the firm demands labour that is equal to…

Q: A perfectly competitive firm's production function is Q=4LK where Q is the amount produced, L is the…

A: Marginal product of labour refers to the change in total product when an additional unit of labor is…

Q: What causes the labor supply curve sometimes to bend backward at higher wages? O It can be harder to…

A: A labor supply curve is a curve which shows the quantity supplied of labor at different wage rates.…

Q: a) Fill in the empty cells in the table. You have been also given following…

A: MPl = Change in q / Change in L VMPL = Output price (P) x MPL Marginal profit = VMPL - W L q MPL…

Q: If the average output per worker in a firm is 7 units per hour, then th- average output will rise as…

A: The average output or AP is the total (TP) output produced per unit of factor of production. It is…

Q: The robot bar below leads to: 035 A. Increases in total output, but with temporary job losses for…

A: From enticing new cafés to exemplary Royal Caribbean contributions, Ovation of the Seas has feasting…

Q: Referring to the table above, construct Jenni's labor demand schedule at each of the following daily…

A: The value of marginal product measures the revenue contributed by the last product or unit of a…

Question

100%

Please answer the separate two-part questions attached.

A competitive firm should keep hiring as long as the value of the marginal product is:
greater than or equal to the marginal product.
greater than or equal to the marginal revenue.
O less than or equal to the marginal cost.
O greater than or equal to the marginal cost.

Melissa let Jill cheat off of her during a history exam last week. Now Melissa is threatening to tell on Jill unless Jill pays her $50. Use
the decision tree below to determine the likely outcome of this situation.
Result
Tell
M: expelled
J: expelled
Рay
Melissa
M: $50
Don't tell
J:-$50
Jill
Tell
M: expelled
J: expelled
Don't pay
Melissa
M: 0
Don't tell
J: 0
O Jill will pay Melissa to keep her quiet and Melissa does not tell.
O Jill will pay Melissa to keep her quiet and Melissa will still tell.
O ill will not pay Melissa to keep her quiet and Melissa does not tell.
O Jill will not pay Melissa to keep her quiet and Melissa does tell.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Marginal product of labor

VIEW

Answers

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What determines the demand for labor for a firm operation in a perfectly competitive out market?
In a perfectly competitive labor market, a profit maximizing firm will hire labor up to the point at which the:O. wage rate >marginal revenue productO. wage rate= marginal resource costO. wage rate =marginal productO. wage rate = marginal revenue productO. wage rate <marginal revenue product
Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price of output is constant at $50 per unit. The production function isf(E, K) = E 1/2K 1/2so that the marginal product of labor isMPE = (1/2)(K/E) 1/2If the current capital stock is fixed at 1,600 units, how much labor should the firm employ in the short run? How much profit will the firm earn?
(a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function is provided in the table.The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above. Question 4 Using your knowledge and understanding of supply and demand analysis to graph the following and explain your graph: (a) an increase in labour productivity. (b) an increase in preference for work. (c) the trade union withdraws labour through a strike.
(a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function is provided in the table. The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above.
Consider a competitive, price-taking firm that employs only one variable input,labor, to produce a product that sells for $14 per unit. The wage rate is $24 per unitof labor and total fixed costs are $500. Fill in the blanks in each column of thistable as instructed by the questions below a-Fill in the blanks in columns 3 and 5. Marginal product begins to diminishbeyond ________ units of labor. Marginal product is negative for the _____thunit of labor. [Note: You will see later in this problem that the profitmaximizinglevel of labor usage does indeed occur well in the range ofdiminishing marginal product, but not into the range of negative marginalproduct. b- Compute marginal and average revenue products and fill in the blanks incolumns 4 and 6. The sixth unit of labor __________________ (increases,decreases) _______________ (total, marginal) revenue by $__________.Decreasing labor usage from three to two units _______________ (increases,decreases) _______________ (total, marginal)…
A perfect competitor charges a price of $30. The first worker he would hire would have a marginal physical product of 20, the second worker he would hire would have a marginal physical product of 18, the third worker would have a marginal physical product of 16, and the fourth worker would have a marginal physical product of 14. (a) How many workers would he hire if the wage rate were $540? worker(s) hired How much would his wage bill be? $ wage bill (b) How many workers would he hire if the wage rate were $470? worker(s) hired How much would his wage bill come to? $ wage bill.