1. The data below show the relationship between number of workers hired and cost and revenue for a small, competitive farm in Alberta.
Number of workers
Marginal product of labour
Value of marginal product of labour
a. Complete the columns of marginal product of labour, value of marginal product of labour, and marginal profit. (3 marks)
b. If the farm above decided to maximize its profit, how many workers would it hire? Explain your answer. (2 marks)
c. Given the results from question (b) above, let's assume the above farm has now a fixed cost of $10, and labour is the only variable factor. What is the farm's profit? Show your calculation. (3 marks)
d. At what point do diminishing returns set in for the farm above? Explain. (3 marks)
Recently Asked Questions
- I am having difficulties in understanding the material for this week's lesson. we need to compare and contrast the strengths and weaknesses of a unitary system
- The media is always highlighting events that take place across the country that poses an ethical dilemma for employers/employees. Explore any media outlet
- What historical lens would the article written by David H. Frisch. "Scientists and the decision to bomb Japan fall under?