Number of Number of Workers Surfboards Produced 1 12 21 3 29 36 42 a. If surfboard sold for $30 and the nominal wage rate was $200. What was real wage rate (hint: in terms of the quantity of surfboards labor can purchase with nominal income)? b. Calculate the marginal product of the 2nd, 3rd, 4th, and 5th worker. c. How many workers would the firm employ? 4-

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter19: Labor And Entrepreneurship: The Human Inputs
Section: Chapter Questions
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Zowie! Surfboards has the following production function.
Number of
Number of
Workers
Surfboards Produced
1
12
2
21
29
4
36
42
a. If surfboard sold for $30 and the nominal wage rate was $200. What was
real wage rate (hint: in terms of the quantity of surfboards labor can
purchase with nominal income)?
b. Calculate the marginal product of the 2nd, 3rd, 4th, and 5th worker.
c. How many workers would the firm employ?
3.
Transcribed Image Text:Zowie! Surfboards has the following production function. Number of Number of Workers Surfboards Produced 1 12 2 21 29 4 36 42 a. If surfboard sold for $30 and the nominal wage rate was $200. What was real wage rate (hint: in terms of the quantity of surfboards labor can purchase with nominal income)? b. Calculate the marginal product of the 2nd, 3rd, 4th, and 5th worker. c. How many workers would the firm employ? 3.
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