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Table 18-2
the Production Details of a Small Apple Farm

question 113

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Table 18-2
The production details of a small apple farm are shown below.Suppose the market for both apple and apple pickers is competitive, with a current market price for a box of apples being $10.Further, assume apple pickers are the sole marginal cost faced by the farmer in selling his product.  Labour  (number of  workers)   Output (boxes  per day)   Marginal  product of  labour  Value of the  marginal  product of  labour  Wage  Marginal  profit 00200$10012020160$100$100236120$100$6034812$1004$1005604$100$60\begin{array}{|l|l|l|l|l|l|}\hline\begin{array}{l}\text { Labour } \\\text { (number of } \\\text { workers) }\end{array} & \begin{array}{l}\text { Output (boxes } \\\text { per day) }\end{array} & \begin{array}{l}\text { Marginal } \\\text { product of } \\\text { labour }\end{array} & \begin{array}{l}\text { Value of the } \\\text { marginal } \\\text { product of } \\\text { labour }\end{array}&\text { Wage }& \begin{array}{l}\text { Marginal } \\\text { profit }\end{array} \\\\\hline 0&0&-&200&\$100\\\hline 1 & 20 & 20 & 160 & \$ 100 & \$ 100 \\\hline 2 & 36 & & 120 & \$ 100 & \$ 60 \\\hline 3 & 48 & 12 & & \$ 100 & \\\hline 4 & & & & \$ 100 & \\\hline 5 & 60 & 4 & & \$ 100 & -\$ 60 \\\hline\end{array}
-Refer to table 18-2.What is marginal profit from adding a third worker?


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