Compute the marginal physical product of labor as well as the least-cost input combination of labor and capital and how much output is produced with that set of resources.
Use the following data for a firm's output at various levels of employment to calculate: (a) its marginal physical product of labor (MPPL) schedule; (b) its (MPPL/MRCL) schedule, given a fixed wage of $20 per hour per worker. (c) Assuming that capital is held constant at 2 machines and MPPK/MRCK = 30, what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources?
Number of Workers (L)
|
Output (Q)
|
1
|
1000
|
2
|
2600
|
3
|
4000
|
4
|
5200
|
5
|
5800
|
6
|
6200 |