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 firmfaces is depicted in the table below. Assume the product price is $4.Calculate the marginal revenue product and the marginal resource cost, and then complete the table.Instructions: Enter your answers as whole numbers.Quantity ofLaborMarginalProductMarginalRevenueHourlyWageRate ($)MarginalResourceTotal ProductTotal LaborProduct ($)Cost ($)(Labor) Cost ($)10400550es11420208.88124381811132134541614182144681417238154801220300The equilibrium wage rate ($) =The equilibrium level of labor use =workers

We have to calculate The equilibrium wage rate and equilibrium level of labour use.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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