Production data for Bob’s Bicycle Factory are as follows:

Other than wages, Bob has costs of $100 (for parts and so on) for each bike assembled. (LO2)

a. Bikes sell for $130 each. Find the marginal product and the value of the marginal product for each worker (don’t forget about Bob’s cost of parts).

b. Make a table showing Bob’s demand curve for labor.

c. Repeat part b for the case in which bikes sell for $140 each.

d. Repeat part b for the case in which worker productivity increases by 50 percent. Bikes sell for $130 each.

Transcribed Image Text:

Number of workers 1 234 Bikes assembled/day 10 18 24 28 5 30