Refer to the table below and answer questions A through D.
Labour Output per hour
0 0
1 6
2 11
3 15
4 18
5 19
A. What is the marginal product of labor as the firm moves from using two workers to using three workers?
B. What is the marginal product of labor as the firm moves from using four workers to using five workers?
C. Suppose the price of output is $4 per unit. What is the value of the marginal product of labor as the firm moves from using three workers to using four workers?
D. If this profit-maximizing firm sells its output in a competitive market for $4 per unit and hires labor in a competitive market for $7/hour, then how many workers should this firm hire?
Refer to the table below and answer questions A through D.
Labour Output per hour
0 0
1 6
2 11
3 15
4 18
5 19
A. What is the marginal product of labor as the firm moves from using two workers to using three workers?
B. What is the marginal product of labor as the firm moves from using four workers to using five workers?
C. Suppose the price of output is $4 per unit. What is the value of the marginal product of labor as the firm moves from using three workers to using four workers?
D. If this profit-maximizing firm sells its output in a competitive market for $4 per unit and hires labor in a competitive market for $7/hour, then how many workers should this firm hire?
Related textbook solutions
Related questions
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Number of workers / Total Product Per Hour
Refer to the table above. If the price per unit of product is $2 and the wage rate is $20, a profit-maximizing firm operating in competitive markets would hire:
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Use the following table to answer questions 1 - 3.
| Number of Workers | Output | Marginal Product of Labor | Value of Marginal Product of Labor | Wage | Marginal Profit |
| 0 | 0 | ||||
| 1 | 100 | $1000 | $400 | $500 | |
| 2 | 80 | $800 | $400 | ||
| 3 | 60 | $400 | $100 | ||
| 4 | 280 | $400 | $400 | ||
| 5 | 20 | $400 |
1. What is the market price of the final good?
A. $5
B. $6
C. $8
D. $10
2. If the firm hires two workers, the two workers together produce
A. 80 units
B. 100 units
C. 180 units
D. 200 units
3. To maximize its profits, how many workers will the firm hire?
A. 2
B. 3
C. 4
D. 5
