Billy is renting trucks that will be used to install solar panels. The table below presents the marginal product (in terms of solar panels installed per week) of various trucks. Assume this is a perfectly competitive market. a. What is the marginal revenue product of each truck if the current market price to install one solar panel is $50? What if the current market price is $100? $150? Using the table below, fill in the “Marginal Revenue Product” columns for each price
Billy is renting trucks that will be used to install solar panels. The table below presents the marginal product (in terms of solar panels installed per week) of various trucks. Assume this is a
a. What is the marginal revenue product of each truck if the current market
Labor Productivity and Marginal Revenue Product for Solar Panel Installers
|
Capital (trucks) |
Marginal Product (solar panels) |
Marginal Revenue Product for P = $50 (dollars) |
Marginal Revenue Product for P = $100 (dollars) |
Marginal Revenue Product for P = $150 (dollars) |
|---|---|---|---|---|
| 1 | 24 | |||
| 2 | 21 | |||
| 3 | 18 | |||
| 4 | 15 | |||
| 5 | 12 | |||
| 6 | 9 |
b. Suppose the cost to rent a truck is $900.
How many trucks will be rented in the price of a solar panel is $50? trucks
How many trucks will be rented in the price of a solar panel is $100? trucks
c. Suppose the cost to rent a truck is $1,800.
How many trucks will be rented in the price of a solar panel is $100? trucks
How many trucks will be rented in the price of a solar panel is $150? trucks
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