If the firms product sells for a constant 200 per unit what


The following table shows productivity for different units of labor:

Labor Units              Total Product 

     1                      12

      2                      21

      3                      27 

      4                      32

      5                      36

(A) If the firm's product sells for a constant $2.00 per unit, what is the marginal revenue product of the third unit of labor?

(B)  If the firm's product sells for a constant $2.00 per unit and the wage rate is $8, how many units of labor will this firm hire?

(C) If the firm can sell 12 units of its product at $1.00 per unit and and 21 units at $0.80 per unit, what is the marginal revenue product of the second unit of labor?

Solution Preview :

Prepared by a verified Expert
Business Management: If the firms product sells for a constant 200 per unit what
Reference No:- TGS02764333

Now Priced at $15 (50% Discount)

Recommended (91%)

Rated (4.3/5)