**Understanding Marginal Product of Labor for a Firm**The marginal product of labor (MPL) for a firm is given by the formula:\[ \text{MPL} = 176 - 4H \]Here, $ H $ represents the number of hours the firm hires workers to work.#### Example Calculations:- For the first hour of labor: \[ \text{MPL} = 176 - 4 \times 1 = 176 - 4 = 172 \]- For the second hour of labor: \[ \text{MPL} = 176 - 4 \times 2 = 176 - 8 = 168 \]If the market wage is $14 per hour, the firm will hire labor up to the point where the marginal product of labor equals the market wage.#### Question:**How many hours of labor will this firm hire?****Solution:**To find how many hours the firm will hire, set the marginal product of labor equal to the market wage:\[ 176 - 4H = 14 \]Solve for $ H $:1. Subtract 14 from both sides: \[ 176 - 14 = 4H \]2. Simplify: \[ 162 = 4H \]3. Divide by 4: \[ H = \frac{162}{4} = 40.50 \]Thus, the firm will hire **40.50 hours of labor**.**Note:** Always round your final answer to two decimal places, where applicable.

Introduction The marginal productivity of labour shows an increase in the output due to employing…

The marginal product of labor for a firm is given by: MPL = 176 - 4H, where H is the number of hours they hire workers to work. For example, the marginal product of the first hour of labor would be 176-4*1, and the marginal product of the second hour of labor would be 176-4*2. If the market wage is $14 per hour, how many hours of labor will this firm hire? Round your final answer to two decimal places.

The marginal product of labor for a firm is given by: MPL = 176 - 4H, where H is the number of hours they hire workers to work. For example, the marginal product of the first hour of labor would be 176-41, and the marginal product of the second hour of labor would be 176-42. If the market wage is $14 per hour, how many hours of labor will this firm hire? Round your final answer to two decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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