Econ 2100 HW 14 Chapter 14 1. The table below shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the firm can sell output in the perfectly competitive market where it operates. Labor Marginal Product of Labor Price of the Product 1 10 $4 2 8 $4 3 7 $4 4 5 $4 3 $4 6. 1 $4 a. What is the value of the marginal product at each level of labor? b. If the firm operates in a perfectly competitive labor market where the going market wage is $12, what is the firm’'s profit maximizing level of employment?

Econ 2100 HW 14 Chapter 14 1. The table below shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the firm can sell output in the perfectly competitive market where it operates. Labor Marginal Product of Labor Price of the Product 1 10 $4 2 8 $4 3 7 $4 4 5 $4 3 $4 6. 1 $4 a. What is the value of the marginal product at each level of labor? b. If the firm operates in a perfectly competitive labor market where the going market wage is $12, what is the firm’'s profit maximizing level of employment?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table shows different numbers of workers hired by Jedi Star, a competitive firm producing light-sabers, and corresponding levels: output. Suppose that Jedi Star sells its product at $1,000 per light-saber and hires its workers in a competitive labor market paying the same rate of $6,000 to all workers. Total Product Number of light-saber (Number of light-sabers per makers 0 1 day) Complete the following table by calculating Jedi Star's marginal product, marginal revenue product, and marginal profit. Marginal Revenue Product (Thousands of Dollars) Marginal Product (Number of light- sabers) 0 14 23 26 36 4 44 5 50 6 54 7 56 AAAAAAA Marginal Profit (Thousands of Dollars)
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Consider a company operating in a competitive market. The company sells units of output and receives a price of $30 per unit, and pays a daily market wage of $285 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Value of the Marginal Product of Labor Labor Output Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) WAGE (Dollars per worker) 500 450 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) 400 Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first worker should be plotted with a horizontal coordinate…