**Demand for Resources**A small manufacturing company has the following daily relationship between labor and output:| Units of Labor | Total Product ||----------------|---------------|| 0 | 0 || 1 | 9 || 2 | 21 || 3 | 35 || 4 | 52 || 5 | 61 || 6 | 65 || 7 | 61 |1. If the firm sells into a perfectly competitive market and the equilibrium price is $3.25 per unit, compute the following: | Units of Labor | Marginal Product | Marginal Revenue Product | |----------------|------------------|--------------------------| | 0 | | | | 1 | | | | 2 | | | | 3 | | | | 4 | | | | 5 | | | | 6 | | | | 7 | | |2. How many workers will the firm hire if the market wage rate (including benefits) is $30.00?3. How many workers will the firm hire if the market wage rate (including benefits) is $20.00?4. If the equilibrium price per unit of output decreases, what would you expect to happen to the number of workers hired?5. If the firm sells in an imperfectly competitive market such that price per unit starts at $4.50 per unit and declines by $0.10 per unit as more is sold, what do you think would happen to the number of labor units hired at $30.00 per unit?

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Demand for Resources A small manufacturing company has the following daily relationship between labor and output: Units of Total Labor Product 1 2 21 3 35 4 52 5 61 65 7 61 If the firm sells into a perfectly competitive market and the equilibrium price is $3.25 per unit, compute the following: 1 Marginal Units of Marginal Revenue Labor Product Product 1 2 3 4 5 7 2 How many workers will the firm hire is the market wage rate (includining benefits) is $30.00? Wt 3 How many workers will the firm hire is the market wage rate(includining benefits) is $20.00?

Demand for Resources A small manufacturing company has the following daily relationship between labor and output: Units of Total Labor Product 1 2 21 3 35 4 52 5 61 65 7 61 If the firm sells into a perfectly competitive market and the equilibrium price is $3.25 per unit, compute the following: 1 Marginal Units of Marginal Revenue Labor Product Product 1 2 3 4 5 7 2 How many workers will the firm hire is the market wage rate (includining benefits) is $30.00? Wt 3 How many workers will the firm hire is the market wage rate(includining benefits) is $20.00?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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