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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 |
- In the third column, calculate the MPL (marginal product of labor) for each worker. (5pt)
- In the fourth column, calculate the VMPL (value of marginal product of labor) for each worker. (5pt)
- At a wage of $150, how many workers should Andy hire? (5pt)
- What is the average product of labor when Andy employs five workers? (5pt)
- Using the data in the table construct a labor demand curve. (5pt)
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