In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firmfaces is depicted in the table below. Assume the product price is $4.Calculate the marginal revenue product and the marginal resource cost, and then complete the table.Instructions: Enter your answers as whole numbers.Quantity ofLaborMarginalProductMarginalRevenueHourlyWageRate ($)MarginalResourceTotal ProductTotal LaborProduct ($)Cost ($)(Labor) Cost ($)10400550es11420208.88124381811132134541614182144681417238154801220300The equilibrium wage rate ($) =The equilibrium level of labor use =workers

We have to calculate The equilibrium wage rate and equilibrium level of labour use.

In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output stru faces is depicted in the table below. Assume the product price is $4. Calculate the marginal revenue product and the marginal resource cost, and then complete the table.

In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output stru faces is depicted in the table below. Assume the product price is $4. Calculate the marginal revenue product and the marginal resource cost, and then complete the table.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.8P

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