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