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I'm struggling in this question, please help me explain. Thank you so much! Choice Five: 1. Neha makes sweaters in her home. Starting with just
I'm struggling in this question, please help me explain. Thank you so much!
Choice Five: 1. Neha makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 70 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Neha's sweater business is a perfectly competitive firm. Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom. Output (Sweaters per year) MPP of Each Loom MRP of Each Loom (Sweaters) (Dollars) Quantity (Looms) 2. Gopher Excavators produces shovels in a small factory and sells the shovels in a competitive market. Computer the Marginal Product of Labor and two different Value of Marginal Product of Labor (VMPL) based on prices $1.00 and $1.50. Labor (# of Output M PL VMPL VM PL workers) (Shovels) (Shovels) (P=$1.00) (P=$1.50)Step by Step Solution
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