1. Production data for Dannys skateboard factory are as follows: NUMBER OF WORKERS SKATEBOARDS ASSEMBLED/DAY 1 10...
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1. Production data for Danny’s skateboard factory are as follows: NUMBER OF WORKERS SKATEBOARDS ASSEMBLED/DAY 1 10 2 18 3 24 4 28 5 30 Other than wages, Danny has costs of $100 (for parts and so on) for each skateboard assembled. LO 5.2 MEDIUM a)Skateboards sell for $130 each. Find the marginal product and the value of the marginal product for each worker (don’t forget about Danny’s cost of parts). b)Make a table showing Danny’s demand curve for labour. c)Repeat part (b) for the case in which skateboards sell for $140 each. d)Repeat part (b) for the case in which worker productivity increases by 50 per cent. Skateboards sell for $130 each.
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