The table below shows a firm's output per day for zero through six workers.
Q L
0 0
46 1
84 2
114 3
136 4
150 5
156 6
The firm's demand and marginal revenue curves are:
P = 50 - 0.125Q MR = 50 - 0.25Q,
where Q = daily sales, and P = output price.
a. Determine the marginal product of labor for one through six workers.
b. Determine the firm's marginal revenue product.
c. How many workers should the firm hire if total wage costs including fringe benefits are $30 per hour? (Each worker is employed for eight hours per day.)

Question

Quizplus · Accepted Answer

The Answer of The table below shows a firm's output per day for zero through six workers.
Q L
0 0
46 1
84 2
114 3
136 4
150 5
156 6
The firm's demand and marginal revenue curves are:
P = 50 - 0.125Q MR = 50 - 0.25Q,
where Q = daily sales, and P = output price.
a. Determine the marginal product of labor for one through six workers.
b. Determine the firm's marginal revenue product.
c. How many workers should the firm hire if total wage costs including fringe benefits are $30 per hour? (Each worker is employed for eight hours per day.)

The Table Below Shows a Firm's Output Per Day for Zero