Question

The following table depicts the number of grapes that can be picked in an hour with varying amounts of labor Assuming that the price of grapes is $3 per flat, calculate total revenue and marginal revenue product (MRP), graph the MRP curve, and answer one question about hiring. Instructions: If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. Number of Pickers Marginal Revenue Output of Grapes Total Revenue Product (per hour) (in flats) (S per hour) (S per hour) 0 0 0 10 30 30 2 28 54 3 43 129 45 4 54 33 5 61 21 64 9 65 61 -12

Answer 1

a)

Number of pickers(L)	Output of grapes(Q)	TR($) = $3* Q	MRP($)
0	0	0
1	10	30	30
2	28	84	54
3	43	129	45
4	54	162	33
5	61	183	21
6	64	192	9
7	65	195	3
8	61	183	-12

MRP ($ per hour) Number of pickers - MRP

b) At a wage rate of $9 per hour, 6 pickers will be hired. Because the firm should hire the number of pickers where MRP = Wage rate = $9.