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Chapter 28: Q.28-1 (page 645)

The following table depicts the output of a firm that manufactures computer printers. The printers sell for $100each.

Labor Input

(workers per week)


 Total Output
( printers per week)
10 200
11 218
12 234
13 248
14 260
15 270
16 278

Calculate the marginal product and marginal revenue product at each input level above 10 units.

Short Answer

Expert verified

The change in total physical output divided by the change in labor input equals marginal physical product.

Step by step solution

01

Introduction

The production of a company that makes computer printers is shown in the table below.

The marginal physical product and marginal revenue product have been determined.

Labor Input

(workers per week)

Total Physical

Output

(printers per week)

Marginal Physical

Product


Marginal Revenue Product

($)


10200--
11218181800
12234161600
13248141400
14260121200
15270101000
162788800

The Labor Input, Total Physical Output, Marginal Physical Product (MPP), and Marginal Revenue Product are all represented in the table above (MRP).

02

step 2    Explanation

  • The change in total physical output divided by the change in labor input equals marginal physical product.
  • The price into MPP equals the marginal revenue product.
  • The printer costs $100per unit in this case.

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Most popular questions from this chapter

Recently, Swedish companies have outsourced manufacturing labor previously performed by Swedish workers at \(20 per hour to U.S. workers who receive a wage rate of \)10 per hour. Evaluate the effects of Swedish manufacturing-labor outsourcing on Swedish and U.S. employment levels and wages.

The following table depicts the output of a firm that manufactures computer printers. The printers sell for $100each.

Labor Input
(workers per week)		 Total Output
(printers per week)
10 200
11 218
12 234
13 248
14 260
15 270
16 278

Calculate the marginal product and marginal revenue product at each input level above 10 units.

The following table depicts the output of a firm that manufactures computer printers. The printers sell for $100each.

Calculate the marginal product and marginal revenue product at each input level above 10units.

Since the beginning of this century, there has been a significant increase in the price of corn-based ethanol.

a. A key input in the production of com-based ethanol is com. Use an appropriate diagram to explain what has likely occurred in the market for corn if the supply curve has not shifted.

b. In light of your answer to part (a), explain why many hog farmers, who in the past used corn as the main feed input in hog production, have switched to cookies, licorice, cheese curls, candy bars, and other human snack foods instead of corn as food for their hogs.

Explain why the short-term effects of outsourcing on U.S. wages and employment tend to be more ambiguous than the long-term effects.
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