Assume p18 p2 10 what is the marginal revenue product for


Jordan's jackets produces two types of coats using the same workers. The production function and marginal product of labor for each type can be expressed as :

Y1=500+200L1-2L12 , MPL1=200 - 4L1

Y2= 300+ 100L2 -0.5L2 , MPL2= 100 - L2

A. Assume P1=8, P=10, what is the marginal revenue product for each type of coat ?

B. If the firm hires 50 identical workers , what is the optimal distribution between types of coats? round your answers to two decimal places. Fractional workers are allowable.

C. What is the equilibrium wage paid to the workers? round your answer to two decimal places.

Solution Preview :

Prepared by a verified Expert
Basic Computer Science: Assume p18 p2 10 what is the marginal revenue product for
Reference No:- TGS02756387

Now Priced at $15 (50% Discount)

Recommended (95%)

Rated (4.7/5)