Question

Homework: ASSESS Chapter 10 Homework Save Score: 0 of 1 pt 5 of 21 (4 complete) HW Score: 19.05%, 4 of 21 pts Text Problem 2.1 B Question Help 5.00 Total product (output) 4.00- 550 500- 450- 400- 350 300- 250- 200- 150- 100- 507 3.00 Marginal revenue product (output) 0 400 2.00 100 200 300 Units of labor (hours) MRP Assuming the price of the output, Px, is equal to $4, graph the firm's marginal revenue product schedule (MRPL) as a function of the number of labor units hired. 1.00- Using the multipoint curved line drawing tool, graph the firm's marginal revenue product curve. Label this curve 'MRP'. Note: Carefully follow the instructions above and only draw the required object. 0.00- 100 200 300 400 Units of labor (hours) After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end the line. If the current equilibrium wage rate is $3 per hour, how many hours of labor will you hire? You will hire hours of labor. (Enter your response as an integer.) Enter your answer in the answer box and then click Check Answer. ?

1. If the current equilibrium wage rate is ​$3 per​ hour, how many hours of labor will you​ hire?

2. How much output will you produce?

Answer 1

1) If the current equilibrium wage rate is $3 per hour, then 100 units of labour will be employed because the marginal revenue product will be equal to $3 and be equal to the wage, when 100 units of labour are hired.

So, 100 units of oabour will be hired at a wage of $3.

2) Now, from the graph, we can see that when 100 units of labour are hired, total output produced by us will be equal to 100.

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