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Andy's Beach Gear rents snorkels for $10 each. From past experience Andy knows how many rentals his workers can do, which is shown in the
- Andy's Beach Gear rents snorkels for $10 each. From past experience Andy knows how many rentals his workers can do, which is shown in the table below. (25 points)
Workers | No. of Rentals |
1 | 100 |
2 | 130 |
3 | 155 |
4 | 175 |
5 | 190 |
6 | 200 |
7 | 205 |
A) In the third column, calculate the MPL (marginal product of labor) for each worker. (5pt)
B) In the fourth column, calculate the VMPL (value of marginal product of labor) for each worker. (5pt)
C) At a wage of $150, how many workers should Andy hire? (5pt)
D) What is the average product of labor when Andy employs five workers? (5pt)
E)Using the data in the table construct a labor demand curve. (5pt)
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