Answered step by step
Verified Expert Solution
Question
1 Approved Answer
bf 23 Martin's Magical Milk Farm produces cow's milk and sells it to a local store for $2.20 per gallon. Agricultural workers in the area
bf 23 Martin's Magical Milk Farm produces cow's milk and sells it to a local store for $2.20 per gallon. Agricultural workers in the area are paid a fixed wage rate of $75 per day. Use this information and the information in the table to answer the questions. Assume that the milk farm is profit maximizing. Workers Quantity of milk per day (gallons) 0 0 1 50 95 2 3 125 4 5 145 155 160 6 What is the marginal product of labor (MPL) for employing a third worker? MPL = gallons What is the value of the marginal product of labor (VMPL) for employing a sixth worker? VMPL = $ How many employees should Martin's farm employ? employees How many employees should Martin's farm employ if the price he received per gallon of milk rose to $2.502 employees
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started