8 03 F k my work mode : This shows what is correct or incorrect for the work you

Question

8 03 F k my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not i Return to question Consider a small landscaping company run by Mr. Viemeister He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $50,000 to $62.000.If he adds one more tractor, monthly revenue will increase from $50,000 to $58,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost per month. $4,000 Instructions: Enter your answers as whole numbers a. What is the marginal revenue product of labor? 12,000 The marginal r e product of capital? hat is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL?

Explanation / Answer

Marginal revenue product of capital = Increase in total revenue when one more tractor is added

Marginal revenue product of capital = 58000 - 50000 = $ 8000

MRPL = $ 12000

Price of labour = $ 4000

MRPL/PL = 3

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