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.)

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Definitions:

Higher Order

Cognitive processes that involve complex thinking skills such as reasoning, decision-making, and problem-solving beyond basic perceptual and motor skills.

Operant Conditioning

A technique of teaching that involves the use of positive reinforcement and disciplinary actions for conduct.

Response Generalization

The process whereby a behavior, once learned in response to a specific stimulus, is performed in the presence of other, similar stimuli.

Primary Reinforcer

A stimulus that satisfies a basic biological need, such as food, water, or sleep, and is innately rewarding.