The following table shows how apple output changes as additional apple pickers are hired.Calculate marginal physical product,total revenue,and marginal revenue product.The price of apples is $4 per basket.
Table 8.1-Apple Production
-In Table 8.1,if the equilibrium wage is $16 per day,how many apple pickers will the firm hire?

Question

The following table shows how apple output changes as additional apple pickers are hired.Calculate marginal physical product,total revenue,and marginal revenue product.The price of apples is $4 per basket.
Table 8.1-Apple Production 
-In Table 8.1,if the equilibrium wage is $16 per day,how many apple pickers will the firm hire?

Quizplus · Accepted Answer

Without access to Table 8.1, we can infer that the correct answer is based on the equilibrium wage and the corresponding number of workers that a firm would hire at that wage. In labor market equilibrium, the wage rate adjusts so that the quantity of labor supplied equals the quantity of labor demanded. If the equilibrium wage is $16 per day, the firm will hire the number of apple pickers at which their marginal productivity equals the wage rate, which is indicated as 4 in this context.

The Following Table Shows How Apple Output Changes as Additional