Number ofworkers Total product per hour 1 24 2 44 3 60 4 74 5 84 6 90 7 92 1) Re
ID: 1228640 • Letter: N
Question
Number ofworkers Total product per hour1 24
2 44
3 60
4 74
5 84
6 90
7 92
1) Refer to the graph above. The marginal physical product of thesixth worker is ------------- and the average product of sixworkers is -------------.
a)15;6
b)6;15
c)13;2
d) 2;13
2) If the price per unit of product is $2, then the marginalrevenue product of the fourth worker is:
a)14
b)28
c)32
d)40
3) If the price per unit of product is $2 and the wage rate is $25, then a profit-maximizing firm operating in competitive marketswould hire:
a) 3 workers
b)4 workers
c)5 workers
d) 6 workers
Please explain
Explanation / Answer
Number of workers
(X)
Total product per hour
(Y)
AVG Product per person
Marginal Product
Total Wage ($25/HR)
Total Revenue
($2/item)
1
24
24
24
25
48
2
44
22
10
50
88
3
60
20
16
75
120
4
74
18.5
14
100
148 = $48 profit/hr
5
84
16.8
10
125
168
6
90
15
6
150
180
7
92
13.14
2
175
184
marginal physical product is the extra outputproduced by one more unit of an input (for instance, the differencein output when a firm's labor is increased from five to six units).Assuming that no other inputs to production change, the marginalproduct of a given input (X) can be expressedas:
MP =Y/X = (the changeof Y)/(the change of X).
1.) b)6;15
Marginal Revenue Product is expressed as: MRP = Change in totalrevenue / Change in total labor
2.) MRP= (74*2-60*2)=28 (B)
3.) b)4 workers(REFER TO ABOVE)
Number of workers
(X)
Total product per hour
(Y)
AVG Product per person
Marginal Product
Total Wage ($25/HR)
Total Revenue
($2/item)
1
24
24
24
25
48
2
44
22
10
50
88
3
60
20
16
75
120
4
74
18.5
14
100
148 = $48 profit/hr
5
84
16.8
10
125
168
6
90
15
6
150
180
7
92
13.14
2
175
184
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