Instructions: For marginal product, enter your answers as a whole number. For all other answers, round your answers to 2 decimal places. Imperfectly Competitive Market Marginal Revenue Product Marginal Product Product Units of Total Total Labor Product Price Revenue IS 0.00 17 17 Os 2.20 IS 34.40 8s 34.40 X 31 14 IS 2.15 Is 66.65 32.25 X 43 12 IS 2.10 90.30 IS 23.65 4 53 10 2.05 $ 108.65 IS 18.35 60 2.00 $ 120.00 IS 11.35 65 5 IS 1.95 $ 126.75 IS 6.75 23
Instructions: For marginal product, enter your answers as a whole number. For all other answers, round your answers to 2 decimal places. Imperfectly Competitive Market Marginal Revenue Product Marginal Product Product Units of Total Total Labor Product Price Revenue IS 0.00 17 17 Os 2.20 IS 34.40 8s 34.40 X 31 14 IS 2.15 Is 66.65 32.25 X 43 12 IS 2.10 90.30 IS 23.65 4 53 10 2.05 $ 108.65 IS 18.35 60 2.00 $ 120.00 IS 11.35 65 5 IS 1.95 $ 126.75 IS 6.75 23
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.8P
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Question
Please help me with the answers not filled in or the answers that are incorrect. Thanks! :)
Transcribed Image Text:Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market.
Instructions: Enter your answers as a whole number.
Marginal
Revenue
Product
Units of
Total
Marginal
Product
Total
Revenue
Labor
Product
Product
Price
$2
17 O
14 O
12 O
10 O
34 Os
34
28 O
24 O
1
17
2
2
31
2
IS
62 Os
3
43
86 Os
4
53
IS
106 O s
20 O
IS
120 O
14 O
10 O
5
60
2
IS
6
65
130 Os
a. How many workers will the firm hire if the market wage rate is $27.95?
2 O worker(s)
How many workers will the firm hire if the market wage rate is $19.95?
4 O worker(s)
b. Show this firm's labor demand curve graphically.
Instructions: Use the tool provided 'Demand' to plot the labor demand curve point by point (plot 6 points total).
Your Graph Score: 100%
35
30
Demand
25
* 20
15
DL
10
4 5 6
1
2
3
7
Quantity of labor demanded
c. Now determine the firm's demand curve for labor, assuming that it is selling in an imperfectly competitive market and that, although
it can sell 17 units at $2.20 per unit, it must lower product price by 5 cents in order to sell the marginal product of each successive
labor unit.
Instructions: For marginal product, enter your answers as a whole number. For all other answers, round your answers to 2 decimal
places.
Imperfectly Competitive Market
Units of
Labor
Marginal
Revenue
Product
Total
Marginal
Product
Product
Total
Product
Price
Revenue
0.00 O
34.40 8 s
$
1
17
17 Os
2.20 Os
IS
34.40 X
31
14 Os
2.15 O s
66.65 O
IS
32.25 X
3
43
12 Os
2.10 O S
2$
90.30 O
23.65 O
4
53
10 O s
IS
2.05 O
$ 108.65
IS
18.35 O
60
7
2.00 O $ 120.00 O s
11.35 O
6.
65
IS
1.95
$ 126.75
O
6.75
Wage rate
Tololoools
Transcribed Image Text:After a campus pub increases its output from 3 kegs of beer per day to 11 kegs of beer per day, its total resource cost increases from
$135 per day to $550 per day.
Instructions: Enter your answers rounded to two decimal places.
a. What is the marginal resource cost per day of the additional kegs?
b. Assuming the pub is using its resources in a profit-maximizing way, what is the marginal revenue product per day of the additional
kegs?
%24
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