In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input The cost and output structure that the firm faces is depicted in the table below. Assume th product price is $6. Calculate the marginal revenue product and the marginal resource cost, and then complet- the table. Instructions: Enter your answers as whole numbers. Quantity of Labor Marginal Product Marginal Revenue Product ($) Hourly Wage Rate ($) Marginal Resource (Labor) Cost ($) Total Product Total Labor Cost ($) 10 400 9. 90 11 416 16 12 132 12 430 14 15 180 13 442 12 18 234 14 452 10 21 294 15 460 8. 24 360 The equilibrum wage rate ($) = The equilibrium level of labor use = workers

In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input The cost and output structure that the firm faces is depicted in the table below. Assume th product price is $6. Calculate the marginal revenue product and the marginal resource cost, and then complet- the table. Instructions: Enter your answers as whole numbers. Quantity of Labor Marginal Product Marginal Revenue Product ($) Hourly Wage Rate ($) Marginal Resource (Labor) Cost ($) Total Product Total Labor Cost ($) 10 400 9. 90 11 416 16 12 132 12 430 14 15 180 13 442 12 18 234 14 452 10 21 294 15 460 8. 24 360 The equilibrum wage rate ($) = The equilibrium level of labor use = workers

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 15 of 20 Output Marginal Labor (Q) Product 15 1 2 50 15 4 70 5 60 In the table above, when the firm produces with 3 units of Labor, its Output (Q) is: 65 75 80 60
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