Quiz5 Problems - Practice problems for Quiz 5(Held on...

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Practice problems for Quiz 5 (Held on Monday, Nov. 30): “Review Questions” of Ch. 7: Nos.1-2 “Problems” in Chapter 7: no. 1 Extra Problems to do: 1. Define the concepts of MPL, APL, and total product of labor. Why does the MPL fall as output increases? 2. Which factors/forces increase the MPL? 3. Consider the production (per day) and labor employment of a shoe maker. Price of a shoe is $10 and wage per day for a worker is $100. L Q VMPL VAPL Labor Cost Rent 1 13 2 25 3 36 4 46 5 55 6 63 7 70 8 76 9 81 a. Fill in the blanks. b. Find the optimum level of employment of labor when the firm holds private property rights. How did you arrive at your answer? (write down
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