The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the relationship between the number of workers Zippy hires and total output, with all other inputs being held constant. In the following table, for each quantity of labor input, fill in the marginal product (MP) and marginal revenue product (MRP) for Zippy. (Note: When the price doubles, this will also double the marginal revenue product.) Labor Input Total Output Marginal Product (Workers per day) (Boxes of paper per day) (Boxes of paper per day) 0 14 235 26 36 44 50 AAAAAA 6 54 Assume that the selling price of paper is $10 per box. If the wage rate is $110.00 per day, Zippy will hire Continue to assume that the selling price of paper is $10 per box. If the wage rate is $90.00 per day, Zippy will hire Assume that the selling price of paper is now $20 per box. workers. workers. If the wage rate remains at $90.00 per day, Zippy will hire workers. Marginal Revenue Product Price = $10 (Dollars) Price = (Dollars) $20

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the
relationship between the number of workers Zippy hires and total output, with all other inputs being held constant.
In the following table, for each quantity of labor input, fill in the marginal product (MP) and marginal revenue product (MRP) for Zippy. (Note: When
the price doubles, this will also double the marginal revenue product.)
Labor Input
Total Output
Marginal Product
(Workers per day)
(Boxes of paper per day)
(Boxes of paper per day)
0
14
235
26
36
44
50
AAAAAA
6
54
Assume that the selling price of paper is $10 per box.
If the wage rate is $110.00 per day, Zippy will hire
Continue to assume that the selling price of paper is $10 per box.
If the wage rate is $90.00 per day, Zippy will hire
Assume that the selling price of paper is now $20 per box.
workers.
workers.
If the wage rate remains at $90.00 per day, Zippy will hire
workers.
Marginal Revenue Product
Price = $10
(Dollars)
Price =
(Dollars)
$20
Transcribed Image Text:The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the relationship between the number of workers Zippy hires and total output, with all other inputs being held constant. In the following table, for each quantity of labor input, fill in the marginal product (MP) and marginal revenue product (MRP) for Zippy. (Note: When the price doubles, this will also double the marginal revenue product.) Labor Input Total Output Marginal Product (Workers per day) (Boxes of paper per day) (Boxes of paper per day) 0 14 235 26 36 44 50 AAAAAA 6 54 Assume that the selling price of paper is $10 per box. If the wage rate is $110.00 per day, Zippy will hire Continue to assume that the selling price of paper is $10 per box. If the wage rate is $90.00 per day, Zippy will hire Assume that the selling price of paper is now $20 per box. workers. workers. If the wage rate remains at $90.00 per day, Zippy will hire workers. Marginal Revenue Product Price = $10 (Dollars) Price = (Dollars) $20
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education