The following table shows the production function for a company. This company sells its product in a perfectly competitive product market at a price of $4 each and hire labor in a perfectly competitive labor market at a wage of $450 per week. A. Calculate the Marginal Marginal Product of the 1", 2, and 34. B. Calculate the Value of Marginal Product of the 1", 24, and 3- C. How many workers should it hire? How do you know? Explain your answer. Show formulas and some of your calculations. number Total of Labor Output Marginal Product of Labor Value of Marginal Product of Labor 1 140 2 260 3 360 4 440
The following table shows the production function for a company. This company sells its product in a perfectly competitive product market at a price of $4 each and hire labor in a perfectly competitive labor market at a wage of $450 per week. A. Calculate the Marginal Marginal Product of the 1", 2, and 34. B. Calculate the Value of Marginal Product of the 1", 24, and 3- C. How many workers should it hire? How do you know? Explain your answer. Show formulas and some of your calculations. number Total of Labor Output Marginal Product of Labor Value of Marginal Product of Labor 1 140 2 260 3 360 4 440
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 1P
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Question
The following table shows the production function for a company.
This company sells its product in a
- Calculate the Marginal MarginalProduct of the 1st, 2nd, and 3rd.
- Calculate the Value ofMarginal Product of the 1st, 2nd, and 3rd
- How many workers should it hire? How do you know? Explain your answer.
Show formulas and some of your calculations.
Transcribed Image Text:The following table shows the production function for a company.
This company sells its product in a perfectly competitive product market at a price of $4
each and hire labor in a perfectly competitive labor market at a wage of $450 per week.
A. Calculate the Marginal Marginal Product of the 1*, 2nd, and 34.
B. Calculate the Value of Marginal Product of the 14, 20d, and 34
C. How many workers should it hire? How do you know? Explain your answer.
Show formulas and some of your calculations.
Value of
Marginal
Product
of Labor Output of Labor
Marginal
Product of
number
Total
Labor
1
140
2
260
3
360
4
440
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