Input and total product (output); MPP and APP of labor and MRP Ch. 22 and 2 Cons
ID: 1224281 • Letter: I
Question
Input and total product (output); MPP and APP of labor and MRP Ch. 22 and 2 Consider the following information on the daily production funks Km relational? between labor input and output, called Total Physical Product of labor (TFT_1 - Q). Assume the firm is a perfect competitor in both the market for its output and the labor market Fill in the APP (average physical product of labor) column At what level(s) of 1. input is APP at a Pill m the MPP (marginal physical product of labor) column At what level of labor input doe* diminishing marginal product of labor "set in"? Explain your choice. lf the price of output ts S100. fill in the marginal revenue product of labor (MRP) column Now assume that Labor units cost SI600 day (i.e.. the MFC- marginal factor cost- is SI 600/day) Mow many workers will this firm hire? Explain your choice. Now there is an increase in the demand for the product the: this firm produces Explain the likely effects on MRP. MFC and the number of workers hired by the firm.Explanation / Answer
APP- 0-0
1-40
2-48
3-48
4-46
5-43.75
6.40
7.36.71
8-33