Problem 08-03 (algo) The table below lists the marginal product per hour of workers in a lightbulb factory. Lightbulbs sell for $2 each, and there are no costs to producing them other than labor costs. Compute the value of the marginal product for each additional worker. Instructions: Enter your responses as whole numbers. Number of Workers 1 2 3 4 5 6 7 8 9 10: Marginal Product (Lightbulbs per hour) 48 44 40 36 32 28 24 20 16 12 Value of marginal product $ a. If the going hourly wage for factory workers is $48 per hour, then the factory manager should hire hourly wage for factory workers is $72 per hour, then the factory manager should hire [ workers. workers. If instead the b. Assume that lightbulbs instead sell for $3 each. If the going hourly wage for factory workers is $48 per hour, then the factory manager should hire workers. If instead the hourly wage for factory workers is $72 per hour, then the factory manager should hire workers. c. Suppose the supply of factory workers in the town in which the lightbulb factory is located is 8 workers (in other words, the labor supply curve is vertical at 8 workers). If lightbulbs sell for $2 each, the equilibrium real wage for factory workers in the town will be $ per hour. per hour, and if lightbulbs sell for $3 each it will be $
Problem 08-03 (algo) The table below lists the marginal product per hour of workers in a lightbulb factory. Lightbulbs sell for $2 each, and there are no costs to producing them other than labor costs. Compute the value of the marginal product for each additional worker. Instructions: Enter your responses as whole numbers. Number of Workers 1 2 3 4 5 6 7 8 9 10: Marginal Product (Lightbulbs per hour) 48 44 40 36 32 28 24 20 16 12 Value of marginal product $ a. If the going hourly wage for factory workers is $48 per hour, then the factory manager should hire hourly wage for factory workers is $72 per hour, then the factory manager should hire [ workers. workers. If instead the b. Assume that lightbulbs instead sell for $3 each. If the going hourly wage for factory workers is $48 per hour, then the factory manager should hire workers. If instead the hourly wage for factory workers is $72 per hour, then the factory manager should hire workers. c. Suppose the supply of factory workers in the town in which the lightbulb factory is located is 8 workers (in other words, the labor supply curve is vertical at 8 workers). If lightbulbs sell for $2 each, the equilibrium real wage for factory workers in the town will be $ per hour. per hour, and if lightbulbs sell for $3 each it will be $
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 15P
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Transcribed Image Text:Problem 08-03 (algo)
The table below lists the marginal product per hour of workers in a lightbulb factory. Lightbulbs sell for $2 each, and there are no costs
to producing them other than labor costs. Compute the value of the marginal product for each additional worker.
Instructions: Enter your responses as whole numbers.
Number of
Workers
1
2
3
4
5
6
7
8
9
10:
Marginal Product
(Lightbulbs per
hour)
48
44
40
36
32
28
24
20
16
12
Value of marginal
product
$
a. If the going hourly wage for factory workers is $48 per hour, then the factory manager should hire
hourly wage for factory workers is $72 per hour, then the factory manager should hire [
workers.
workers. If instead the
b. Assume that lightbulbs instead sell for $3 each. If the going hourly wage for factory workers is $48 per hour, then the factory
manager should hire workers. If instead the hourly wage for factory workers is $72 per hour, then the factory manager should
hire
workers.
c. Suppose the supply of factory workers in the town in which the lightbulb factory is located is 8 workers (in other words, the labor
supply curve is vertical at 8 workers). If lightbulbs sell for $2 each, the equilibrium real wage for factory workers in the town will be $
per hour, and if lightbulbs sell for $3 each it will be $
per hour.
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