The following table shows the relationship between workers and output for a factory in the short run, with capital held constant. This firm is a monopoly in the output market, and price and marginal revenue for the firm are also given in the table. Find the marginal revenue product of labor (MRPL). Marginal Physical Product (MPPL) Labor Input 0 1 2 3 4 5 If the wage rate is $408, this firm will hire 0 20 14 12 9 3 workers. In general, a monopolist will employ Price of Output (P) 40 39 38 37 36 35 Marginal Revenue (MR) 38 36 34 32 30 workers than a similar competitive firm. MRPL 760 504 408 288 90
The following table shows the relationship between workers and output for a factory in the short run, with capital held constant. This firm is a monopoly in the output market, and price and marginal revenue for the firm are also given in the table. Find the marginal revenue product of labor (MRPL). Marginal Physical Product (MPPL) Labor Input 0 1 2 3 4 5 If the wage rate is $408, this firm will hire 0 20 14 12 9 3 workers. In general, a monopolist will employ Price of Output (P) 40 39 38 37 36 35 Marginal Revenue (MR) 38 36 34 32 30 workers than a similar competitive firm. MRPL 760 504 408 288 90
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following table shows the relationship between workers and output for a factory in the short run, with capital held constant. This firm is a monopoly in the output market, and price and marginal revenue for the
firm are also given in the table. Find the marginal revenue product of labor (MRPL).
Marginal Physical Product (MPPL)
Labor Input
0
1
2
3
4
5
If the wage rate is $408, this firm will hire
0
20
14
12
9
3
workers. In general, a monopolist will employ
Price of Output
(P)
40
39
38
37
36
35
Marginal Revenue (MR)
38
36
34
32
30
workers than a similar competitive firm.
MRPL
760
504
408
288
90
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