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harlequinferret970Lv1

28 Sep 2019

Answer question 1 based on the following information for a firm operating in a perfectly competitive output and factor(resource) market

Number of worker days Output (total)

1 100

2 400

3 650

4 850

5 950

If the price of the product is $2 per unit and the firm must pay $450 per working day for all the workers it needs and the firm operates in a perfectly competitive product and resource market, then to maximize profits, how many worker days should the firm hire?

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Chika IlonahLv10

28 Sep 2019

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Related questions

1. In a perfectly competitive industry, an individual firm faces:

a. a perfectly elastic labour supply curve

b. a perfectly inelastic labour supply curve

c.a perfectly vertical labour supply curve

d.none of the above

2. A firm purchases more capital equipment. We would expect to observe:

a. an increase in the supply of labour for this firm

b. a decrease in the supply curve of labour for this firm

c.an increase in the wage rate paid for labour by this firm

d.an increase in the demand for labour by this firm

3. Which of the following would be h most likely outcome if all perfectly competitive firms in a product market join together to form a monopoly?

a. the rate of output in the market will increase but the quantity of labour input will decrease

b.both the rate of output and the quantity of labour input employed will increase

c.the rate of output in the market will decrease but the quantity of labour input will increase

d.both the rate of output and the quantity of labour input employed will decrease

4. what does the marginal revenue product equal when 28 workers are hired in one week?

Labor input (workers per week)__Marginal physical product (output per week)__marginal revenue

25_______________________150_________________________________9.00

26_______________________140_________________________________8.50

27_______________________130_________________________________8.00

28_______________________120_________________________________7.50

29_______________________110________________________________7.00

a. $210

b.$7.50

c.$900

d.$1040

5. The profit-maximizing firm will hire additional workers until:

a. the extra revenue by the last workers hired equals zero

b.the extra cost associated with hiring the last worker equals the price of goods produced

c.the additional cost associated with hiring the last worker equals the average wage rate of workers

d.the additional cost associated with hiring the last worker equals the additional revenue generated by that worker.

rosehyena631

Suppose that labor is the only input used by a perfectly competitive firm. The firm’s production function is as follows:

Days of labor Units of output

0 0

1 7

2 13

3 19

4 25

5 28

6 29

7 29

a. Calculate the marginal product for each additional worker.

b. Each unit of output sells for $10. Calculate the value of the marginal product of each worker.

c. Compute the demand schedule showing the number of workers hired for all wages from zero to $100 a day.

greyswan67

Assume that the firm only uses labor as a resource in production and is hiring workers in a purely competitive labor market. In other words, the firm can hire as many workers as it wishes without affecting the equilibrium wage rate.

Units of Labor (L)	Total Product (Q)	Product Price (P)	Total Revenue (TR)	Marginal Revenue Product (MRP)
0	0	$2.20	$0	---
1	15	$2.00	$30	$30
2	28	$1.80
3	39	$1.60
4	48	$1.40
5	55	$1.20
6	60	$1.10