Question
QUESTION 2: Market for Factors of Production a. Fill out the table below when the price is $10 per unit of output. b. If the
QUESTION 2: Market for Factors of Production
a. Fill out the table below when the price is $10 per unit of output.
b. If the wage rate is $100, how many workers will be hired? Explain your answer.
c. What is going to be thetotal wage bill (wage x number of workers hired)for the firm?
d. In general, explain how does improvement of technology affects Value of Marginal Product of worker?
| Number of Workers | Output | Marginal Product of Labour | Value of Marginal Product of Labour | |
| 0 | 0 | 0 | 0 | |
| 10 | 100 | |||
| 15 | 200 | |||
| 25 | 300 | |||
| 40 | 390 | |||
| 60 | 430 |
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Managerial Economics And Strategy
Authors: Jeffrey M. Perloff, James A. Brander
3rd Edition
0134899709, 978-0134899701
