Suppose that labor is the only input used by East West University. The price of a cheakup is BDT 200 and the equilibrium wage of dentist (labor) is BDT 1000. The table below shows the dentists total product schedule. Quantity of dentists -------------- Quantity of chekups 0 0 2 20 6 40 16 70 a) Draw a table to present the marginal product of labor (MPL) for each dentist and the value of the marginal product of labor (vMPL) per dentist. b) How many dentist should be hired to maximize profit and how many chekups can be produced?
Suppose that labor is the only input used by East West University. The
Quantity of dentists -------------- Quantity of chekups
0 0
2 20
6 40
16 70
a) Draw a table to present the marginal product of labor (MPL) for each dentist and the value of the marginal product of labor (vMPL) per dentist.
b) How many dentist should be hired to maximize profit and how many chekups can be produced?
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