The Output of Workers at a Factory Depends on the Number

question 17

Essay

The output of workers at a factory depends on the number of supervisors employed.The factory sells its good in a competitive product market at a price of P = $5.The daily wage of supervisors is W = $600.Fill in the MPL and MRPL columns in the table below.
$$\begin{array} { | c | c | c | c | } \hline \text { Supervisors } & \begin{array} { c } \text { Output (units } \\\text { per day) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Product } \\\left( M _ { \mathrm { L } } \right)\end{array} & \begin{array} { c } \text { Marginal } \\\text { Revenue Product } \\\left( \mathrm { MRP } _ { \mathrm { L } } \right)\end{array} \\\hline 0 & 100 & & \\\hline 1 & 500 & & \\\hline 2 & 860 & & \\\hline 3 & 1160 & & \\\hline 4 & 1400 & & \\\hline 5 & 1560 & & \\\hline 6 & 1640 & & \\\hline 7 & 1680 & & \\\hline 8 & 1680 & & \\\hline\end{array}$$
How many supervisors should the firm employ? Explain why.

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