Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

U.5. logging companies employ Canacian loggers to cut Maine trees. When the federal government restriciod the number of temporary workers permitted in the United States,

image text in transcribed
U.5. logging companies employ Canacian loggers to cut Maine trees. When the federal government restriciod the number of temporary workers permitted in the United States, the logging companies had to use fewer Caradian loggers. Unable to find U. S. workers willing to cut trees, the logging companies had to lay off workers in complementary operations - for example, truck drivers. Suppose that a logging company needs exactly one truck driver for each six loggers it omploys. Each truck difiver and feam of six loggers can cut and transpart s0,000 lons of wood per das What is the marginal revenue product function for truckers, and how does the function depend on the number of loggers employed? Aswume the logging industry is compettive. Let p be the peice of a ton of wood, L be the number of loggers employod, and T be the namber of truck drivent amployed The marghal revenue product function for truckers. MRP T ,is A. MRRP =00,000if(L/6)T and zero otherwise MRPP =080.000 if T(L/6) and rero otherwise. MP1=p80,000 if {(L/6) at and zero otherwise. D. MPP=60.000(L/6)TI(L/6)T and 00,000(L/6) otherwise. L. MPP. =P80.000 if LT and zero otherwise. Show that with a decrease in the number of loggers, a logging company would hire fewor truchars. U.5. logging companies employ Canacian loggers to cut Maine trees. When the federal government restriciod the number of temporary workers permitted in the United States, the logging companies had to use fewer Caradian loggers. Unable to find U. S. workers willing to cut trees, the logging companies had to lay off workers in complementary operations - for example, truck drivers. Suppose that a logging company needs exactly one truck driver for each six loggers it omploys. Each truck difiver and feam of six loggers can cut and transpart s0,000 lons of wood per das What is the marginal revenue product function for truckers, and how does the function depend on the number of loggers employed? Aswume the logging industry is compettive. Let p be the peice of a ton of wood, L be the number of loggers employod, and T be the namber of truck drivent amployed The marghal revenue product function for truckers. MRP T ,is A. MRRP =00,000if(L/6)T and zero otherwise MRPP =080.000 if T(L/6) and rero otherwise. MP1=p80,000 if {(L/6) at and zero otherwise. D. MPP=60.000(L/6)TI(L/6)T and 00,000(L/6) otherwise. L. MPP. =P80.000 if LT and zero otherwise. Show that with a decrease in the number of loggers, a logging company would hire fewor truchars

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions