Holding capital fixed at K=2 units, the firm’s production table shows when labor units (L) = 1, output (Q)=5; L=2, Q=11; L=3, Q=16; L=4, Q=20; L=5, Q=22. Also, the firm can sell each unit of output at a price P=$2.
If so, the marginal product of labor MPL for the 4th unit of labor is ____.
Question options: I answered C, 16. Is this correct
a)
20
b)
8
c)
16
d)
4
Question 12
0 / 1 point
You estimate a short-run production function to be Q = 16L0.8 which gives a Marginal Product of Labor function MPL = 0.8*16L-0.2 = 12.8/L0.2 If the product made by the labor sells at a price P=$8 per unit, then the Marginal Revenue Product of Labor MRPL for the 100th labor unit is ______. If labor costs wage = $46 per labor unit, then the firm ______ hire the 100th labor unit.
Question options: I answered D, $52.6; should. Is this correct?
a)
$40.8; should not
b)
$47.6; should
c)
$35.7; should not
d)
$52.6; should
Question 13
0 / 1 point
You estimated a short-run production function to be Q = 10L0.5 where L is units of labor. If so, the Marginal Product of Labor for the 16th unit of labor is _______.
Question options: I answered C, 3.75. Is this correct?
a)
5.0
b)
1.25
c)
3.75
d)
2.5
