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tanwalrus510Lv1
28 Sep 2019
Use the following table to answer questions 1 - 3.
Number of Workers
Output
Marginal Product of Labor
Value of Marginal Product of Labor
Wage
Marginal Profit
0
0
1
100
$1000
$400
$500
2
80
$800
$400
3
60
$400
$100
4
280
$400
$400
5
20
$400
1. What is the market price of the final good?
A. $5
B. $6
C. $8
D. $10
2. If the firm hires two workers, the two workers together produce
A. 80 units
B. 100 units
C. 180 units
D. 200 units
3. To maximize its profits, how many workers will the firm hire?
A. 2
B. 3
C. 4
D. 5
Use the following table to answer questions 1 - 3.
| Number of Workers | Output | Marginal Product of Labor | Value of Marginal Product of Labor | Wage | Marginal Profit |
| 0 | 0 | ||||
| 1 | 100 | $1000 | $400 | $500 | |
| 2 | 80 | $800 | $400 | ||
| 3 | 60 | $400 | $100 | ||
| 4 | 280 | $400 | $400 | ||
| 5 | 20 | $400 |
1. What is the market price of the final good?
A. $5
B. $6
C. $8
D. $10
2. If the firm hires two workers, the two workers together produce
A. 80 units
B. 100 units
C. 180 units
D. 200 units
3. To maximize its profits, how many workers will the firm hire?
A. 2
B. 3
C. 4
D. 5
Insha FatimaLv10
28 Sep 2019
Related textbook solutions
Related questions
The firm uses 15 units of K, Price of K=$400 per unit; Price of good = $100; Wage per worker $40,000
| L | Q |
| 1 | 800 |
| 2 | 1900 |
| 3 | 2700 |
| 4 | 3350 |
| 5 | 3775 |
| 6 | 4100 |
- . Does this represent the SR or LR? Explain.
- . What is the optimal number of workers this firm will hire?
- . What are the profits of this number of workers?
- . Is the underlying cost curve for this firm quadratic or cubic? Explain?
