The company will hire the workers up to that unit of labour for which the Marginal revenue product of labour will be equal to marginal factor cost or MC.
MRPL = MR × MPL
MPL = change in output /Change in labour
MR = change in TR /Change in output
Total revenue = Price × Quantity
Using these formula we can develop the following table
For hiring 3rd unit of labour the firm is willing to pay $ 4,000. (Refer the MRPL column).
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Labor Demand Homework . Unanswered Consider the following data taken from a Florida orange grove (farm)...
Labor demand Homework. Unanswered Consider the following data taken from a Florida orange grove (farm) where the price of oranges is $4.00 per bushel and the price per worker is $3000 (per month). What would be a correct guess how how many workers would be hired by the farm? Workers Output (bushels 400 1600 2600 3400 4000 4400 4600 Numeric Answer: 4 You are incorrect Answered - Incorrect 2 attempts left. Change your responses to resubmit