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Problem-solving question:
Use the following data for a firm's output at various levels of employment (L) to calculate:
a) its marginal physical product of labor (MPPL) schedule;
(b) its (MPPL/MRCL) schedule, given a fixed wage (W = MRCL) of $25 per hour per worker.
(c) Assuming that capital (K) is held constant at 2 machines and MPPK/MRCK = 10,
what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources?
Number of Workers (L) Output (Q) 1 100 2 300 3 600 4 850 5 1000 6 1100
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