Compute and graph the marginal revenue product mrp for each

Assignment Help Microeconomics
Reference no: EM13456081

A firm that is perfectly competitive in product and factor markets has the following pro­duction function:

                                                       L                    Q

                                                       0                    0

                                                       1                    7

                                                       2                    15

                                                       3                    22

                                                       4                    28

                                                       5                    33

                                                       6                    37

                                                       7                    40

                                                       8                    42

                                                       9                    43

a. Calculate and graph the Marginal Revenue Product (MRP) for each unit of labor when the price of the firm's out­put is $5. Why does the MRP curve have a negative slope?

b. How many units of labor will the firm hire if the wage for each worker is $35 and the prod­uct price is $5? Why?

c. If the wage falls to $25 per worker, how many workers will the firm now hire? Why?  Show these results in your graph in part a.

Suppose that the price of the firm's product increases to $6 due to an increase in market demand for the firm's product.

d. How many workers will the firm now hire if the wage for each worker is $30? Why? Show this result in a separate graph.

Reference no: EM13456081

Questions Cloud

What is integrative bargaining what are the key differences : what is integrative bargaining? what are the key differences between integrative bargaining and distributive
Building on your earlier experience with leadership : building on your earlier experience with leadership competencies and emotional intelligence leaders must also be aware
Besides the right to vote what other concerns are presented : compare and contrast the comments of professor kuhlman and professor woodworth-ney.nbsp do you find any similarities
What is a distribution channel what is the relationship : 1.what is a distribution channel? what is the relationship between channels of distribution and logistics? how does
Compute and graph the marginal revenue product mrp for each : a firm that is perfectly competitive in product and factor markets has the following proshyduction
Compare and contrast the atmospheres of jovian planets and : compare and contrast the atmospheres of jovian planets and the atmospheres of terrestrial planets. why are the
Describe some of the business and financial implications : you are currently working at a large academic medical center in an urban community. for the last several weeks you have
Finally describe one educational strategy to address each : select three potential mediators of the behavior of increasing fruit and vegetable intake in teenage boys. state
Analyze the importance of competitive intelligence in : write a 1050 to 1400 word paper in which you 1. justify the importance of marketing research in the development of

Reviews

Write a Review

Microeconomics Questions & Answers

  Business proposal for your chosen good or service

Business proposal for your chosen good or service. Include assumptions about the elasticity of demand and the market structure for the good or service.

  Compare your findings to those you found

Suppose the price of celeriac decreases from $80 to $60, and the quantity demanded increases from 100 to 150 bushels. What is the price elasticity of demand using the standard percentage formulas? What is the arc price elasticity of demand?

  The two primary issues in international commerce

The two primary issues in international commerce are dumping and tariffs. Dumping is the international form of predatory pricing, prohibited by the WTO. Tariffs are taxes on imported goods, effectively increasing the price on these goods.

  For a typical competitive firm the price in the long run

for a typical competitive firm the price in the long run equilibrium will tend toa. be greater than average costb. be

  1 has the absolute advantage in sending emails while has

1. has the absolute advantage in sending emails while has the absolute advantage in typing pages.a. jennifer

  How our federal deficit and debt affected

Health care. This, of course, is a huge economic issue now with the attempted startup of Obama care. In your analysis here do not focus on the software issues. Those are technical problems and, granted, the system failed two weeks before releas..

  Explain how the distribution of income among different

discuss how the distribution of income among various groups of income earners have changed in this country during the

  Define three factors shift the aggregate supply to right

Briefly describe three factors that could shift the aggregate supply curve of the economy to the right. Briefly explain the difference between the deficit of the Federal government and the National debt of the United States.

  At what price would the firm earn a normal profit

Construct a table showing the average variable, average total, and marginal costs of paper cup production. Show your work or embed an Excel spreadsheet into your file showing the formulas you used.

  Output decision making

Describe why the profits of such firms tend to increase when there is the excess supply of the inputs they employ in their production process.

  Determine values at the profit-maximizing activity level

Calculate output, marginal cost, averagecost, price and profit at the average cost-minimizing activity level and calculate these values at the profit-maximizing activity level.

  How long or short should a mission and vision statement be

What factors need to be considered to produce an appropriatemission statement and vision statement for the organization How long or short should a mission and vision statement be

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd