Write an expression for the firms marginal revenue product., Ask an Expert

Economics

Clarke Mementos manufactures small figurines that they sell to retailers around the country. Clarke sells the figurines for $5.00 each, a price the firm considers given. Clarke's production function is given by the expression:
Q = 60L 0.5L2,

where Q = number of figurines per day, and L = number of skilled workers per day. Based on this production
function, the average and marginal products of labor are as follows:
AP = 60 - 0.5L MP = 60 - L

a. prepare an expression for the firm's marginal revenue product.

b. Clarke currently pays $150 per day (including fringe benefits) for each of its skilled workers. How many workers should the firm employ?

c. Clarke's workers are highly skilled artisans with a great deal of job mobility. The firm's managers fear that they must increase the workers' total compensation to $200 per day to remain competitive. What impact would the wage increase have upon the firm's employment?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M940225

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question the prisoners dilemma provides insight into much

Question: The prisoners' dilemma provides insight into much more than price-fixing, as the next three questions indicate.53 a. People often complain that conversations at cocktail parties (where there is no music) are so ...

Question suppose you are the manager of a chain of computer

Question: Suppose you are the manager of a chain of computer stores. For obvious reasons you have been closely following developments in the computer industry, you have just learned that the government has passed a two-p ...

Question in 1993 the funds rate fell to 3 while the rate of

Question: In 1993 the funds rate fell to 3% while the rate of inflation was also 3%. Bond yields also fell sharply that year. Since the funds rate was well below its equilibrium value, why didn't inflationary expectation ...

Question assume that i arrange a 100 loan from you at 10

Question: Assume that I arrange a $100 loan from you at 10 percent real interest, and we both expect 20 percent inflation over the next year. What will the nominal interest rate be on that loan? Now assume that you lend ...

Question do you think it is possible for government to

Question: Do you think it is possible for government to outlaw everything that businesses could do wrong? If so, why does government not do that? If not, how can regulation stay ahead of rogue businesses that push the li ...

Question you are 20 years old and you would like to have

Question: You are 20 years old, and you would like to have $1,000,000 in your retirement savings account when you are 60 years old. You need to start saving for retirement right away because of the time value of money. H ...

Qestion suppose that the demand for rough laborers is ld

Question: Suppose that the demand for rough laborers is L_D = 100 - 10W, where W = the wage in dollars per hour and L = the number of workers. If immigration increases the number of rough laborers hired from 50 to 60, by ...

Suppose that demand and supply schedules are given

Suppose that demand and supply schedules are given by: Price Quantity Dem Quantity Supp $ 0 21 0 $1 18 4 $2 15 8 $3 12 12 $4 9 16 $5 6 20 $6 3 24 $7 0 28 At a price of $4, there would be a ____________ of the good. A. s ...

Question what is the effective semi-annual every 6 months

Question: What is the effective semi-annual (every 6 months) interest rate for a 10% nominal annual loan with weekly compounding. NOTE: Enter your percentage as a whole number to 3 decimal places (i.e. 10.512% would be e ...

Question many studies have shown that our sensory detection

Question: Many studies have shown that our sensory detection abilities decline as we grow older. Discuss the implications of the absolute threshold for marketers attempting to appeal to the elderly. The response must be ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert