Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $52,000 to $70,000. If he adds one more tractor, monthly revenue will| increase from $52,000 to $64,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,00 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? 2$ The marginal revenue product of capital? 2$ b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/P)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP ďPd?

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $52,000 to $70,000. If he adds one more tractor, monthly revenue will| increase from $52,000 to $64,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,00 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? 2$ The marginal revenue product of capital? 2$ b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/P)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP ďPd?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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