The table below shows the data for Willie the Pickle Maker. The marginal product figures are for cases of pickles per day. $\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Labour }\end{array} & \mathbf { M P } _ { \mathbf { L } } & \mathbf { M R P } _ { \mathbf { 1 } } & \mathbf { M R P } _ { \mathbf { 2 } } \\\hline 1 & 20 & & \\\hline 2 & 18 & & \\\hline 3 & 14 & & \\\hline 4 & 9 & & \\\hline 5 & 4 & & \\\hline 6 & 1 & & \\\hline\end{array}$ a) Fill in the MRP₁ column assuming that the firm sells its product in a competitive market for $24 a case (situation A). Then, fill in the MRP₂ column assuming that the price of a case of pickles increase to $27 (situation B)
b) If labour costs $220 a day, how much labour will Willie the Pickle Maker hire in each of the two situations?
c) What has happen to demand curve for labour in the two situations?

Question

The table below shows the data for Willie the Pickle Maker. The marginal product figures are for cases of pickles per day.

\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Labour }\end{array} & \mathbf { M P } _ { \mathbf { L } } & \mathbf { M R P } _ { \mathbf { 1 } } & \mathbf { M R P } _ { \mathbf { 2 } } \\\hline 1 & 20 & & \\\hline 2 & 18 & & \\\hline 3 & 14 & & \\\hline 4 & 9 & & \\\hline 5 & 4 & & \\\hline 6 & 1 & & \\\hline\end{array}

a) Fill in the MRP₁ column assuming that the firm sells its product in a competitive market for $24 a case (situation A). Then, fill in the MRP₂ column assuming that the price of a case of pickles increase to $27 (situation B)
b) If labour costs $220 a day, how much labour will Willie the Pickle Maker hire in each of the two situations?
c) What has happen to demand curve for labour in the two situations?

Quizplus · Accepted Answer

The Answer of The table below shows the data for Willie the Pickle Maker. The marginal product figures are for cases of pickles per day. $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Units of } \ \text { Labour } \end{array} & \mathbf { M P } _ { \mathbf { L } } & \mathbf { M R P } _ { \mathbf { 1 } } & \mathbf { M R P } _ { \mathbf { 2 } } \ \hline 1 & 20 & & \ \hline 2 & 18 & & \ \hline 3 & 14 & & \ \hline 4 & 9 & & \ \hline 5 & 4 & & \ \hline 6 & 1 & & \ \hline \end{array}$$ a) Fill in the MRP₁ column assuming that the firm sells its product in a competitive market for $24 a case (situation A). Then, fill in the MRP₂ column assuming that the price of a case of pickles increase to $27 (situation B) b) If labour costs $220 a day, how much labour will Willie the Pickle Maker hire in each of the two situations? c) What has happen to demand curve for labour in the two situations?

The Table Below Shows the Data for Willie the Pickle