Answers to Review Problem 1 Economics 102 Professor Blair1. Mary runs a small company, Footloose Boots, that manufactures hiking boots. The table below shows the total output of boots per month for different quantities of labor. a. Fill in column 3 by using the data in column 2 to compute the marginal physical product of each additional worker. b. Mary can sell boots for $60 a pair. Each boot contains $20 worth of leather, leaving $40 for wages or profits. Because Mary has a small firm, the price is unaffected by the quantity that she sells. Fill in column 4 by computing the marginal revenue product of each worker. Be sure to use the $40 net figure rather than the $60 gross. Number of BootmakersTotal Number of Pairs of Boots Per MonthMarginal Physical Product (boots)Marginal Revenue Product (dollars)0060240016055220021155020003165451800421040160052503514006285
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