11. Fresh Veggie is one of many small farms in Florida operating in a perfectly competitive market. Farm labor is also perfectly competitive, and Fresh Veggie can hire as many workers as it wants for $20 a day. The daily productivity of a tomato picker is given in the table. If a bushel of tomatoes sells for $6, how many workers will Fresh Veggie hire? Also, fill in MP of Labor and VMPL columns. The table illustrates the relationship between labor input and the production of bushels of tomatoes, along with the Marginal Product (MP) of Labor and the Value of the Marginal Product of Labor (VMPL).**Table Explanation:**- **Columns:** - **Labor:** Represents the number of workers employed (ranging from 0 to 6). - **Bushels of tomatoes:** Shows the total output in bushels corresponding to each level of labor. - **MP of Labor:** Denotes the additional output added by one more unit of labor (currently not provided in the table). - **VMPL:** Represents the monetary value of the additional output by one more unit of labor (currently not provided in the table).**Data:**- With 0 workers, 0 bushels are produced.- With 1 worker, 12 bushels are produced.- With 2 workers, 22 bushels are produced.- With 3 workers, 30 bushels are produced.- With 4 workers, 35 bushels are produced.- With 5 workers, 38 bushels are produced.- With 6 workers, 40 bushels are produced.This data can be used to calculate the MP of Labor and VMPL, which help in understanding the productivity and financial contribution of each additional worker.

Marginal product of labor is the increase in output fron increasing one more unit of the good.

Answered: 11. Fresh Veggie is one of many small…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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11. Fresh Veggie is one of many small farms in Florida operating in a perfectly competitive market. Farm labor is also perfectly competitive, and Fresh Veggie can hire as many workers as it wants for $20 a day. The daily productivity of a tomato picker is given in the table. If a bushel of tomatoes sells for $6, how many workers will Fresh Veggie hire? Also, fill in MP of Labor and VMPL columns.

The table illustrates the relationship between labor input and the production of bushels of tomatoes, along with the Marginal Product (MP) of Labor and the Value of the Marginal Product of Labor (VMPL).

**Table Explanation:**

- **Columns:**
- **Labor:** Represents the number of workers employed (ranging from 0 to 6).
- **Bushels of tomatoes:** Shows the total output in bushels corresponding to each level of labor.
- **MP of Labor:** Denotes the additional output added by one more unit of labor (currently not provided in the table).
- **VMPL:** Represents the monetary value of the additional output by one more unit of labor (currently not provided in the table).

**Data:**

- With 0 workers, 0 bushels are produced.
- With 1 worker, 12 bushels are produced.
- With 2 workers, 22 bushels are produced.
- With 3 workers, 30 bushels are produced.
- With 4 workers, 35 bushels are produced.
- With 5 workers, 38 bushels are produced.
- With 6 workers, 40 bushels are produced.

This data can be used to calculate the MP of Labor and VMPL, which help in understanding the productivity and financial contribution of each additional worker.

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