Economics Homework Help
The following table shows the total output each week of workers on a perfectly competitive cherry farm. The
The following table shows the total output each week of workers on a perfectly competitive cherry farm. The
equilibrium price of a pound of cherries is $4. Complete the Marginal Product of Labor and the Marginal Revenue Product of Labor columns in the table.
Then, using the table, answer the two questions below.
need answer with full explanation.
i think the optimal hiring point is where vmpl = wages, so for part a, the firm should hire 1 worker, but i’m unsure.
4. (2 points) The following table shows the total output each week of workerson a perfectly competitive cherry farm. The equilibrium price of a pound ofcherries is $4. Complete the Marginal Product of Labor and the MarginalRevenue Product of Labor columns in the table. Then, using the table,answer the two questions below.Quality of LaborTotal OutputMarginalValue ofProduct of LaborMarginalProduct of Labor250250$1,000600350$1,400900300$1,200YOUAWN-O1,125225$9001,300175$7001,450150$6001,560110$440How many workers will the farmer hire if the equilibrium wage rate is:A. $1,000 per week?B. $450 per week?
