The Table Below Shows the Data for Willie the Pickle

question 76

Essay

The table below shows the data for Willie the Pickle Maker. The marginal product figures are for cases of pickles per day. $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Labour }\end{array} & \mathbf { M P } _ { \mathbf { L } } & \mathbf { M R P } _ { \mathbf { 1 } } & \mathbf { M R P } _ { \mathbf { 2 } } \\\hline 1 & 20 & & \\\hline 2 & 18 & & \\\hline 3 & 14 & & \\\hline 4 & 9 & & \\\hline 5 & 4 & & \\\hline 6 & 1 & & \\\hline\end{array}$$ a) Fill in the MRP₁ column assuming that the firm sells its product in a competitive market for $24 a case (situation A). Then, fill in the MRP₂ column assuming that the price of a case of pickles increase to $27 (situation B)
b) If labour costs $220 a day, how much labour will Willie the Pickle Maker hire in each of the two situations?
c) What has happen to demand curve for labour in the two situations?

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Definitions:

Expectations

Beliefs or hopes regarding what is possible or likely to happen in the future.

Cross-sequential Study

A research design that combines both cross-sectional and longitudinal methods to study individuals at different ages and how they change over time.

Adult Intelligence

The level of intellectual functioning and capacity in adults, encompassing abilities such as abstract thinking, learning, and understanding.

Wisconsin Longitudinal

A long-term research study focusing on the life course of individuals who graduated from Wisconsin high schools in 1957.