The Table Below Shows a Firm's Output Per Day for Zero

question 23

Essay

The table below shows a firm's output per day for zero through six workers.
Q L
0 0
46 1
84 2
114 3
136 4
150 5
156 6
The firm's demand and marginal revenue curves are:
P = 50 - 0.125Q MR = 50 - 0.25Q,
where Q = daily sales, and P = output price.
a. Determine the marginal product of labor for one through six workers.
b. Determine the firm's marginal revenue product.
c. How many workers should the firm hire if total wage costs including fringe benefits are $30 per hour? (Each worker is employed for eight hours per day.)

---

Definitions:

Licensing

The act of granting official permission to use intellectual property, perform specific activities, or operate legally under defined conditions.

Sole Proprietorship

A business structure where a single individual owns and runs the business, enjoying full control and responsibility for its debts and liabilities.

Partnership

A lawful business structure involving two or more people who manage and profit together.

Manufacturing Franchise

A type of franchise agreement granting the right to manufacture and sell goods using the franchisor's trademark and business model.