The following table shows the total output each week of workers on a perfectly competitive cherry farm. The equilibrium price of a pound of cherries is $4. Complete the Marginal Product of Labor and the Marginal Revenue Product of Labor columns in the table. Then, using the table, answer the following questions. How many workers will the farmer hire if the equilibrium wage rate is: a. $550 per week? b. $650 per week? Marginal Product of Labor Value of Marginal Product of Labor Quantity of Labor Total Output

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The following table shows the total output each week of workers on a perfectly
competitive cherry farm. The equilibrium price of a pound of cherries is $4. Complete the
Marginal Product of Labor and the Marginal Revenue Product of Labor columns in the
table. Then, using the table, answer the following questions.
How many workers will the farmer hire if the equilibrium wage rate is:
a. $550 per week?
b. $650 per week?
Quantity of Labor
Marginal Product
of Labor
Value of Marginal
Product of Labor
Total Output
1
250
250
1000
600
350
1400
3
900
300
1200
4
1,125
1,300
1,450
1,560
225
900
175
700
150
600
7
110
440
Transcribed Image Text:The following table shows the total output each week of workers on a perfectly competitive cherry farm. The equilibrium price of a pound of cherries is $4. Complete the Marginal Product of Labor and the Marginal Revenue Product of Labor columns in the table. Then, using the table, answer the following questions. How many workers will the farmer hire if the equilibrium wage rate is: a. $550 per week? b. $650 per week? Quantity of Labor Marginal Product of Labor Value of Marginal Product of Labor Total Output 1 250 250 1000 600 350 1400 3 900 300 1200 4 1,125 1,300 1,450 1,560 225 900 175 700 150 600 7 110 440
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