In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output stru faces is depicted in the table below. Assume the product price is $4. Calculate the marginal revenue product and the marginal resource cost, and then complete the table.
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output stru faces is depicted in the table below. Assume the product price is $4. Calculate the marginal revenue product and the marginal resource cost, and then complete the table.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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 depicted in the table below. Assume the product price is $4.
Calculate the marginal revenue product and the marginal resource cost, and then complete the table.
Instructions: Enter your answers as whole numbers.
Quantity of
Labor
Marginal
Product
Marginal
Revenue
Hourly
Wage
Rate ($)
Marginal
Resource
Total Product
Total Labor
Product ($)
Cost ($)
(Labor) Cost ($)
10
400
5
50
es
11
420
20
8.
88
12
438
18
11
132
13
454
16
14
182
14
468
14
17
238
15
480
12
20
300
The equilibrium wage rate ($) =
The equilibrium level of labor use =
workers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ea3a059-0a8a-4779-bed8-ef5706e6b286%2Fbec084a0-9ba7-42ec-b8dd-a478ab6c4882%2Fp1ya6it_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 depicted in the table below. Assume the product price is $4.
Calculate the marginal revenue product and the marginal resource cost, and then complete the table.
Instructions: Enter your answers as whole numbers.
Quantity of
Labor
Marginal
Product
Marginal
Revenue
Hourly
Wage
Rate ($)
Marginal
Resource
Total Product
Total Labor
Product ($)
Cost ($)
(Labor) Cost ($)
10
400
5
50
es
11
420
20
8.
88
12
438
18
11
132
13
454
16
14
182
14
468
14
17
238
15
480
12
20
300
The equilibrium wage rate ($) =
The equilibrium level of labor use =
workers
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