Suppose that labor is the only input used by a perfectly competitive firm that can hire workers for $500 per week. Complete the table below, when each unit of output sells for $10.   What amount of labor force should be hired? Explain!

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose that labor is the only input used by a perfectly competitive firm that can hire workers for $500 per week. Complete the table below, when each unit of output sells for $10.

 

What amount of labor force should be hired? Explain!

Labor
Output
Value of
Marginal
product of
labor
Wage
Marginal
Profit
marginal
product of
labor
1
100
2
190
3
270
340
420
470
Co
Transcribed Image Text:Labor Output Value of Marginal product of labor Wage Marginal Profit marginal product of labor 1 100 2 190 3 270 340 420 470 Co
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