2: Factor (labor) market: Jane runs a nursery. The more nursery workers she hires, the more flowers she can grow and sell. But because the size of her nursery is limited, each additional worker adds less to her output of flowers. The accompanying table shows Jane’s production function per month. Each flowerpot can be sold at an average price of $40. Calculate MPL and VMPL for each worker. Number of nursery workers Number of flowerpots per month Marginal Product of Labor (MPL): Additional flowerpots per month Value of Marginal Product of Labor: VMPL, per flowerpot per month 0 0 N/A N/A 1 80 2 150 3 210 4 260 5 300 6 330 Determine Jane’s labor demand schedule for each of the following monthly wage rates for nursery workers: Monthly Wage Rate Number of nursery worker(s) demanded $1,100 ? $1,500 ? $1,900 ? $2,100 ? $2,900 ? $3,300 ?
2: Factor (labor) market:
Jane runs a nursery. The more nursery workers she hires, the more flowers she can grow and sell. But because the size of her nursery is limited, each additional worker adds less to her output of flowers. The accompanying table shows Jane’s production function per month. Each flowerpot can be sold at an average price of $40. Calculate MPL and VMPL for each worker.
|
Number of nursery workers
|
Number of flowerpots per month |
Marginal Product of Labor (MPL): Additional flowerpots per month |
Value of Marginal Product of Labor: VMPL, per flowerpot per month |
|
0 |
0 |
N/A |
N/A |
|
1 |
80 |
|
|
|
2 |
150 |
|
|
|
3 |
210 |
|
|
|
4 |
260 |
|
|
|
5 |
300 |
|
|
|
6 |
330 |
|
|
Determine Jane’s labor demand schedule for each of the following monthly wage rates for nursery workers:
|
Monthly Wage Rate |
Number of nursery worker(s) demanded |
|
$1,100 |
? |
|
$1,500 |
? |
|
$1,900 |
? |
|
$2,100 |
? |
|
$2,900 |
? |
|
$3,300 |
? |
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