Microeconomic WA 4 - Microeconomic 112 Chapter 4 1. Labor...

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Microeconomic 112 Chapter 4 1. Labor is the only input used by a perfectly competitive firm. It hires workers for $50 a day. The firm's production function is as shown in the following Table . (The table will open in a new window.) Each unit of output sells for $10. 0 A. Complete the table to show the marginal product of labor and the value of the marginal product of labor. 1 B. How many days of labor should the firm hire? Explain. 2. Describe the factors of production. What are the returns to these factors (their price)? Describe the marginal products of each factor and how the value of the marginal product of each factor is determined. There are four factors of production: land, labor, capital and enterprise. Land includes all the natural resources and all the resource which is gifts from nature like air water etc and its price is the rent we have to pay for using it up. Labor includes all the human resources like technical expertise used in
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Microeconomic WA 4 - Microeconomic 112 Chapter 4 1. Labor...

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