Suppose Ramone's Drones maximizes profits by making local deliveries using small drones and centrally located pilots to control the drones remotely. In the markets for pilots and drones, neither side has any market power - that is, they are both competitive markets. A) If drones cost Ramone $1000 each to hire, what is the marginal revenue product (MRPK) of drones? B)If pilots can be hired at a cost of $300 per day, what is the marginal revenue product (MRPL) of the pilots?

Suppose Ramone's Drones maximizes profits by making local deliveries using small drones and centrally located pilots to control the drones remotely. In the markets for pilots and drones, neither side has any market power - that is, they are both competitive markets. A) If drones cost Ramone $1000 each to hire, what is the marginal revenue product (MRPK) of drones? B)If pilots can be hired at a cost of $300 per day, what is the marginal revenue product (MRPL) of the pilots?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter29: Resource Markets

Section: Chapter Questions

Problem 14E

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