Microeconomics Writing Assignment 4

5/20/11

Scott Gardner

Pr. Buresh

MicroEconomics WA4

1. wear is the only input utilize by a perfectly competitive firm. It hires workers for $50 a day. The firms proceedsion function is as shown in the following Table. (The control board will open in a new window.) each(prenominal) unit of output sells for $10.

A. Complete the table to show the peripheral product of drive and the value of the marginal product of crowd.




| age of Labor |Units of Daily Output |Marginal Product of Labor (MPL) |Value of MPL |
|0 |0 | | |
|1 |7 |7 |$70 |
|2 |13 |6 |$60 |
|3 |19 |6 |$60 |
|4 |25 |6 |$60 |
|5 |28 |3 |$30 |
|6 |29 |1 |$10 |

B. How many days of labor should the firm hire? Explain.
. 5 days. 5 days of labor would cost 250 but would generate 280 leaving a attain of 30. 6 days would thusly bring in -10 so it would obviously not be profitable.
.
2. distinguish the factors of production. What are the returns to these factors (their price)? Describe the marginal products of each factor and how the value of the marginal product of each factor is determined.

The factors of production include labor, land and capital...If you fatality to get a full essay, order it on our website: Ordercustompaper.com



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