Data of a competitive firm on labour and output

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Reference no: EM13815807

The following table is a record of the data of a competitive firm on labour and output:

Unit of labour Total product MPL VMPL

0 0

1 10

2 22

3 32

4 39

5 42

6 41

Suppose the product price is $5 and the market wage per unit of labour is $35.

a) Reproduce the above table on your answer sheet and complete the table.

b) How many units of labour should be employed to maximise profit? Briefly explain your answer.

Reference no: EM13815807

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