Question

The following schedule shows the technology of production at Mahalo Macadamia Nut Farm for​ 2015: Workers Total Pounds of Macadamia Nuts Per Day 0 0 1 200200 2 350350 3 450450 4 500500 5 525525 6 510510 If macadamia nuts sell for ​$88 per pound and workers can be hired in a competitive labor market for ​$200200 per​ day, how many workers should be​ hired? The firm should hire nothing ​worker(s). ​(Enter your response as an integer.​) What if workers unionized and the wage rose to ​$1 comma 2001,200​? The firm should hire nothing ​worker(s). ​(Enter your response as an integer.​) Enter your answer in each of the answer boxes.

Answer 1

Answer:

MRPL= $200 = wage rate when there are 5 workers

and MRPL = $1,200 = wage rate when there are 2 workers.

Explanation:

The computation of unionized is shown below:-

Marginal revenue product of labor = Marginal product × Price per unit

Workers   Total Production    Marginal Product     MRPL

                   (per day)

a                    b                        b × $8

0                   0

1                   200                         200                      $1,600

2                   350                          150                      $1,200

                                               (350 - 200)

3                   450                           100                    $800

                                               (450 - 350)

4                   500                          50                        $40

                                               (500 - 450)

5                   525                           25                       $200

                                               (525 - 500)

6                    510                         -15                        -$120

                                               (510 - 525)

From the above table MRPL = $200 = wage rate when there are 5 workers

and MRPL = $1,200 = wage rate when there are 2 workers.