In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Assume the product price is $6. a. Calculate the marginal revenue product and the marginal resource cost, and then fill in the blanks in the labor supply table. Instructions: Enter your answers as a whole number.
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Assume the product price is $6. a. Calculate the marginal revenue product and the marginal resource cost, and then fill in the blanks in the labor supply table. Instructions: Enter your answers as a whole number.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Connect Problem CP 17-07 (algo)
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output
structure that the firm faces is shown in the table below. Assume the product price is $6.
a. Calculate the marginal revenue product and the marginal resource cost, and then fill in the blanks in the labor
supply table.
Instructions:
Enter your answers as a whole number.
Units of
Labor
10
11
12
13
14
15
Total Product
400
416
430
442
452
460
Marginal
Product
16
14
12
10
8
Marginal
Revenue
Product
Wage Rate
workers
$9
12
15
18
21
24
b. What are the equilibrium wage rate and level of employment?
Equilibrium wage rate = $
Equilibrium level of employment:
Total Labor
Cost
$90
132
180
234
294
360
Marginal
Resource
(Labor) Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2a87b79-2d4c-478f-9b6b-a4537e3431af%2F8f3559ef-1107-497c-8203-692c281cee50%2Fgwo57bn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Connect Problem CP 17-07 (algo)
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output
structure that the firm faces is shown in the table below. Assume the product price is $6.
a. Calculate the marginal revenue product and the marginal resource cost, and then fill in the blanks in the labor
supply table.
Instructions:
Enter your answers as a whole number.
Units of
Labor
10
11
12
13
14
15
Total Product
400
416
430
442
452
460
Marginal
Product
16
14
12
10
8
Marginal
Revenue
Product
Wage Rate
workers
$9
12
15
18
21
24
b. What are the equilibrium wage rate and level of employment?
Equilibrium wage rate = $
Equilibrium level of employment:
Total Labor
Cost
$90
132
180
234
294
360
Marginal
Resource
(Labor) Cost
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