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Use the following table to answer the questions. Number of Workers Output Marginal Product of Labour Value of Marginal Product of Labour Wage Marginal Profit
Use the following table to answer the questions.
Number of Workers | Output | Marginal Product of Labour | Value of Marginal Product of Labour |
Wage | Marginal Profit |
0 | 0 | ||||
1 | 100 | $1,000 | $500 | $500 | |
2 | 80 | $800 | $500 | ||
3 | 60 | $500 | $100 | ||
4 | 280 | $400 | $500 | ||
5 | 20 | $500 |
For1 Markeach:
a) What is the market price of the final good?
b) If the firm hires two workers, how many units will the two workers together produce?
c) What is the marginal product of the fourth worker?
d) What is the marginal profit of the fourth worker?
e) What is the fourth worker's contribution to total revenue?
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