Question:
Use the following data for a firm's output at various levels of employment (L) to calculate:
Number of Workers (L) Output (Q)
1 100
2 300
3 600
4 850
5 1000
6 1100
a) Its marginal physical product of labor (MPPL) schedule;
(b) Its (MPPL/MRCL) schedule, given a fixed wage (W = MRCL) of $25 per hour per worker.
(c) Assuming that capital (K) is held constant at 2 machines and MPPK/MRCK = 10, what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources?