Explain the meaning of mrp using data presented in the

Reference no: EM13396900

Sullivan's Custom Cabinets operate in a perfectly competitive market and employs labor and capital. Labor costs $30 a day. Machines cost $36 a day. Currently, Sullivan's has six machines and the marginal revenue product of capital is $30. Output sells at $5 per unit. Sullivan's hires you as a consultant and provides you with the following production function.

Workers (days) Total Output

1 9

2 17

3 24

4 30

5 35

6 39

7 42

1. Explain, in your own words, the meaning of MRP.

2. Using the data presented, in the short run, how many workers would you recommend Sullivan's hire per day to maximize profits?

3. Explain how you arrived at this number.

Reference no: EM13396900

Questions Cloud

What effect if any would consumers pulling money out of : what effect if any would consumers pulling money out of checking accounts and putting it into home safes have on

How many lives does the project save annually find the : there are 20000 people in a population. the government is considering a project which will cost 1000000 annually to add

Determine the amount of the projected benefit obligation at : on january 1 2013 burleson corporations projected benefit obligation was 30 million. during 2013 pension benefits paid

Find out how price elasticity of demand affects decision : prepare a 700-1050-word paper summarizing the content. in the paper be sure to address the followingwhat causes the

Explain the meaning of mrp using data presented in the : sullivans custom cabinets operate in a perfectly competitive market and employs labor and capital. labor costs 30 a

Recognize economic factors which affect real gdp : identify economic factors that affect the real gdp the unemployment rate the inflation rate and a key interest rate.

Would the society that emphasized capitalist mode of : capitalism emphasizes fostering individualism while socialism emphasizes collectivism. a major criticism of capitalism

Is it easier to maximize value to shareholders with capital : is it easier to maximize value to shareholders with capital constraints by moving capital between the affiliates of am

Are the differences in the ways that the two airlines : respond to the case questionsprompts listed below. these are also found in the depreciation at delta airlines and

User Account

All Pages