The following table shows the relationship between the number of trainers working at the new gym (SD Fitness) and the number of clients they can train per week. These clients represent the output of the firm. Clients pay $60 per hour.Find the Marginal Product (MPL) for the 4th, 5th and 6th trainer. Find the Value of Marginal Product (VMPL) of the 4th, 5th and 6th trainer. SD Fitness’s trainers are paid $650 per week. How many trainers will the gym hire? How do you know? NumberofTrainers123456ClientsTrained105080100110115MarginalProduct ofLaborValue ofMarginalproduct of Labor

Marginal product is the change in total product due to an additional unit of input. Marginal revenue product is the product of output price and marginal product. The below table shows the filled table :- The formula page is as shown below :- a). MPL of 4th trainer = 20 MPL of 5th trainer = 10 MPL of 6th trainer = 5 b). MRP of 4th trainer = 1200 MRP of 5th trainer = 600 MRP of 6th trainer = 300 c). The firm will hire labor upto were Marginal revenue product is equal to the wage rate As per the table , MRP is just greater than the wage rate when 4 trainer hired. Hence, The Gym will hire 4 trainer. This is because MRP is just greater than the wage rate at this quantity of trainer.

Answered: The following table shows the…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table shows the relationship between the number of trainers working at the new gym (SD Fitness) and the number of clients they can train per week. These clients represent the output of the firm. Clients pay $60 per hour.

Find the Marginal Product (MPL) for the 4^th, 5^thand 6^th trainer.
Find the Value of Marginal Product (VMPL) of the 4^th, 5^thand 6^thtrainer.
SD Fitness’s trainers are paid $650 per week. How many trainers will the gym hire? How do you know?

Number
of
Trainers
1
2
3
4
5
6
Clients
Trained
10
50
80
100
110
115
Marginal
Product of
Labor
Value of
Marginal
product of Labor

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