Question
The following table depicts the output of a firm that manufactures wireless earbuds. The earbuds sell for $5 each. Labor Input (workers per hour) Total
The following table depicts the output of a firm that manufactures wireless earbuds. The earbuds sell for $5 each.
| Labor Input (workers per hour) | Total Physical Output (earbuds per hour) | Marginal Physical Product | Marginal Revenue Product |
| 10 | 200 | - | - |
| 11 | 221 | ||
| 12 | 240 | ||
| 13 | 257 | ||
| 14 | 272 | ||
| 15 | 285 | ||
| 16 | 296 |
Calculate the marginal physical product at each input level above 10 units.(Enter your responses in the table above as whole numbers.)
Calculate the marginal revenue product at each input level above 10 units.
Suppose this firm has chosen to hire 15 workers.
What is the maximum wage the firm would be willing to pay?
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Environmental Markets A Property Rights Approach
Authors: Terry L Anderson, Gary D Libecap
1st Edition
0521279658, 9780521279659
