Assuming that the price of grapes is $3 per flat, use the data in Problem 3 to calculate total revenue and marginal revenue product (MRP) and graph the MRP curve. How many pickers will be hired if the going wage rate is $9 per hour

Assuming that the price of grapes is $3 per flat, use the data in Problem 3 to calculate total revenue and marginal revenue product (MRP) and graph the MRP curve. How many pickers will be hired if the going wage rate is $9 per hour

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 19PAE

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Concept explainers

Labor Force Participation Rate analysis

The labor force participation rate analysis calculates the percentage of the working-age population either employed or actively seeking work. It can be anyone in the age category of 16 to 64, on the condition that they are not institutionalized. A high labor force participation rate shows that more people are employed and contributing their wages to the economy, making it a healthy economy. It also shows that there are more people actively looking for employment leading to more hiring options for employers. On the other hand, a low labor force participation rate shows a low number of people employed or looking for work. This leads to an economic setback with fewer wages going into the economy. In such a scenario, employers might have to cut back on profits, lay off employees, or stop the process of hiring.

Question

Assuming that the price of grapes is $3 per flat, use the data in Problem 3 to calculate total revenue and marginal revenue product (MRP) and graph the MRP curve.

How many pickers will be hired if the going wage rate is $9 per hour?

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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