please explain how to the answer was given units of labor units of Output 0 0 1
ID: 1251819 • Letter: P
Question
please explain how to the answer was givenunits of labor units of Output
0 0
1 7
2 13
3 18
4 22
5 25
a.Calculate the marginal revenue product for each add. unit of labor of output sell $3
b. draw the damand curve for labor based on above data and the $3 per unit product price
c. wage rate is 15 per hour, how much labor will be hired
d. compare firms total revenue to the total amount paid for labor. Who gets the difference ? what
what happens would happen to answeres to part b and c if pridce increase to 5 per unit
Explanation / Answer
units labor units Output Total Revenue Marginal Revenue Marginal Product of Labor 0 0 0 1 7 21 21 7 2 13 39 18 6 3 18 54 15 5 4 22 66 12 4 5 25 75 9 3 a.Calculate the marginal revenue product for each add. unit of labor of output sell $3 Marginal Revenue is the difference in Revenue from one more unit of labor, Marginal Product of Labor is the production increase for one more unit of labor b. draw the demand curve for labor based on above data and the $3 per unit product price put price on the vertical axis and quantity on the horizontal axis, then draw a horizontal line at p=3, since price in unchanged by quantity. c. wage rate is 15 per hour, how much labor will be hired 3 units of labor because that is where wage rate=marginal revenue (MC=MR) d. compare firms total revenue to the total amount paid for labor. Who gets the difference ? Total revenue is (Q*P)=54. Three units of labor cost 45. The difference is used to pay fixed costs. what happens would happen to answers to part b and c if price increase to 5 per unit b. draw the demand curve for labor based on above data and the $5 per unit product price put price on the vertical axis and quantity on the horizontal axis, then draw a horizontal line at p=5, since price in unchanged by quantity. c. wage rate is 15 per hour, how much labor will be hired 5 units of labor because that is where wage rate=marginal revenue (MC=MR)
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