Suppose that labor is the only input used by a perfectly competitive firm. To the right is the firm’s…

Suppose that labor is the only input used by a perfectly competitive firm. To the right is the firm’s…

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Suppose that labor is the only input used by a perfectly competitive
firm. To the right is the firm’s daily ‘production function’. [ See below for the table]
(a) Calculate the marginal product, MP, for each additional worker. (b) Each unit of
output sells for $10. Calculate the marginal revenue product of each worker.
Quantity
of labor
0
1
2
3
4
5
6
7
Total
Product
0
8
15
21
26
30
33
35
MP
MRP @ if
MR = $10
MRP @ if
MR = $12

Expert Answer:

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To calculate the marginal product MP for each additional worker we need to fin
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