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 $54,000 to $72,000. If he adds one more tractor, monthly revenue will increase from $54,000 to $66,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6, per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? 2$ The marginal revenue product of capital? b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP C/PO?
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 $54,000 to $72,000. If he adds one more tractor, monthly revenue will increase from $54,000 to $66,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6, per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? 2$ The marginal revenue product of capital? b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP C/PO?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
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![Suppose that hiring a third worker at the campus coffee shop increases output from $125 per hour to $175 per hour. What is the
marginal product of labor per hour from adding that third worker?
Instructions: Enter your answer as a whole number.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3e0308a-7a3d-4be0-bcf5-e7949815e58c%2F5d5449ca-c97f-4747-bcda-52b496f8e37e%2Fbu11pq6_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that hiring a third worker at the campus coffee shop increases output from $125 per hour to $175 per hour. What is the
marginal product of labor per hour from adding that third worker?
Instructions: Enter your answer as a whole number.
![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 $54,000 to $72,000. If he adds one more tractor, monthly revenue will
increase from $54,000 to $66,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,000
per month.
Instructions: Enter your answers as a whole number.
a. What is the marginal revenue product of labor?
The marginal revenue product of capital?
$
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 /P d?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3e0308a-7a3d-4be0-bcf5-e7949815e58c%2F5d5449ca-c97f-4747-bcda-52b496f8e37e%2Febv470w_processed.png&w=3840&q=75)
Transcribed Image Text: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 $54,000 to $72,000. If he adds one more tractor, monthly revenue will
increase from $54,000 to $66,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,000
per month.
Instructions: Enter your answers as a whole number.
a. What is the marginal revenue product of labor?
The marginal revenue product of capital?
$
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 /P d?
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