Total revenue, 3 workers: $Total revenue, 4 workers: $Total revenue, 5 workers: $ b. As we mentioned in the chapter, the marginal product of labor is the extra revenue that’s generated by each extra worker. It’s the change in revenue from adding one more worker. Fill out that column, as well. Again, round your answers to the nearest dollar. Marginal revenue, 3 workers: $Marginal revenue, 4 workers: $Marginal revenue, 5 workers: $ c. If the market wage for semiskilled workers is $25 per hour, how many workers should Dunder Mifflin hire? Optimal number of workers: In a market economy, firms with more workers can make and sell more output-that goes without saying. The marginal productof labor tells you how much extra revenue each extra worker generates. Economists tend to use one particular equation to sum upthe link between workers, revenue, and the marginal product of labor: We call it the production function. Let's practice with itjust a little here.a. At Dunder Mifflin, the hourly revenue production function works like this:Revenue100 x VNumber of semiskilled workersThis is a way of saying that in order to sell product, you actually need workers to do work. Use this formula to fill out the "TotalRevenue" column in the next table.Round your answers to the nearest dollar.Marginal Product ofLabor ($)Number ofTotal RevenueWorkers($)N/A1100100214141345

Total Revenue:- It means the sum of receipts which have been earned after the sale of any given…

Answered: In a market economy, firms with more…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Total revenue, 3 workers: $

Total revenue, 4 workers: $

Total revenue, 5 workers: $

b. As we mentioned in the chapter, the marginal product of labor is the extra revenue that’s generated by each extra worker. It’s the change in revenue from adding one more worker. Fill out that column, as well. Again, round your answers to the nearest dollar.

Marginal revenue, 3 workers: $

Marginal revenue, 4 workers: $

Marginal revenue, 5 workers: $

c. If the market wage for semiskilled workers is $25 per hour, how many workers should Dunder Mifflin hire?

Optimal number of workers:

In a market economy, firms with more workers can make and sell more output-that goes without saying. The marginal product
of labor tells you how much extra revenue each extra worker generates. Economists tend to use one particular equation to sum up
the link between workers, revenue, and the marginal product of labor: We call it the production function. Let's practice with it
just a little here.
a. At Dunder Mifflin, the hourly revenue production function works like this:
Revenue
100 x VNumber of semiskilled workers
This is a way of saying that in order to sell product, you actually need workers to do work. Use this formula to fill out the "Total
Revenue" column in the next table.
Round your answers to the nearest dollar.
Marginal Product of
Labor ($)
Number of
Total Revenue
Workers
($)
N/A
1
100
100
2
141
41
3
4
5

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