Suppose labor is available to a firm at a cost of $12 per hour. Also suppose that employing another hour of labor adds 5 units to output and that any amount of output can be sold for $10 per unit. An additional hour of labor would add $50 in additional revenue to the firm. (Enter your response as a whole numer.) This firm should hire more labor. Now suppose that the last hour of labor hired by the firm has a marginal product of 4 units of output. The marginal revenue product of labor is now $ (Enter your response as a whole numer.)
Suppose labor is available to a firm at a cost of $12 per hour. Also suppose that employing another hour of labor adds 5 units to output and that any amount of output can be sold for $10 per unit. An additional hour of labor would add $50 in additional revenue to the firm. (Enter your response as a whole numer.) This firm should hire more labor. Now suppose that the last hour of labor hired by the firm has a marginal product of 4 units of output. The marginal revenue product of labor is now $ (Enter your response as a whole numer.)
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.8P
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