Practice Quiz8

Principles of Macroeconomics

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Econ 101: Principles of Microeconomics NAME: Korinna K. Hansen Disc. Section: Practice Quiz 8 The market demand for gardeners in the Madison area is given by P L = 100 – 2Q L , and the market supply by P L = 10 + Q L , where Q L is the quantity of labor in thousands and P L is a gardener’s hourly wage. Bill’s planting firm is looking into hiring some guys to plant bushes this spring. The Bill’s planting firm will receive $10 per bush planted from all their customers. Assume that both the labor market for gardeners and the bush planting market are perfectly
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Unformatted text preview: competitive. The table below gives you information about the productivity in Bills planting firm. Gardeners Total Output per hour (# of Bushes planted) 1 8 2 14 3 18 4 20 (5 points) Given the information in the table above, what are the marginal revenue product values for gardeners in this firm? Fill in the table above. (5 points) Should Bills planting firm hire any gardeners? How many? Why?...
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