Regulators usually encourage natural monopolists to engage in marginal cost pric
ID: 1225884 • Letter: R
Question
Regulators usually encourage natural monopolists to engage in marginal cost pricing. Marginal cost pricing, with subsidies from the government offsetting the losses. Inefficient pricing. average cost pricing. Suppose that in a computer factory, if there is 1 worker, 80 computers are produced per week. If there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week. Given this information, the marginal product of the third worker is 60 computers per week. 210 computers per week. 50 computers per week. 70 computers per week. The firm's demand curve for labor is the marginal revenue product curve for labor. the marginal physical product curve for labor multiplied by the price of labor. the marginal physical product curve for labor divided by the price of the good. the demand curve for the good produced divided by the price of the good.Explanation / Answer
2)Suppose that in a computer factory, if there 1 worker, 80 computers are produced per week. if there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week. Given this information, what is the marginal product of the third worker
In this case, there is a diminishing MPL so for the third worker it is 210-150=70 computers produced.