Question

	First scenario: output price is given
	The table (below) gives the total output, per hour, for anywhere from 0 to 17 workers.
	You need to determine how many workers should be hired at five different wage rates, ranging from $13/hour up to $25/hour. The wage rate includes all relevant benefits. To get to this answer you will need to calculate the marginal product of labor and the marginal revenue product of labor. You will be entering the values you obtain for the boldy outlined celles into the Moodle submission area.
	Cost of the other (non-labor) inputs that go into a case (and would need to be increased if more labor was hired and output increased) =			$13.00
	Price received per case =			$15.00
	Marginal product of labor is the change in total product when labor is increased by one.
	Marginal Revenue Product (net of the cost of the other required inputs), when the output price is fixed) equals marginal product times the ((fixed) output price -$13)
	Please note: A few of the table values are filled in. Use these to determine if your approach to the problem is correct.
	Number of workers	Total product	Marginal product of labor	Marginal Revenue Product (net of the cost of the other required inputs)
	0	0
	1	10	10
	2	21	11	$22.00
	3	33	12	$24.00
	4	46	13	$26.00
	5	60	14	$27.00
	6	75	15	$30.00
	7	91	16	$32.00
	8	106	15	$30.00
	9	120	14	$28.00
	10	133	13	$26.00
	11	145	12	$24.00
	12	156	11	$21.00
	13	165	9	$18.00
	14	172	7	$14.00
	15	177	5	$10.00
	16	179	2	$4.00
	17	179	0	$0.00
		Using the information from above, fill in the following 'derived demand' schedule:
		Hourly wage	Number of workers to maximize profits
		$13.00	15
		$17.00	13
		$21.00	12
		$23.00	11
		$25.00	10