# Suppose that labor is the only input used by a perfectly competitive firm. The firm s production...

## Question:

Suppose that labor is the only input used by a perfectly competitive firm. The firm's production function is as follows:

Days of Labor | Units of Output |
---|---|

0 days | 0 units |

1 | 7 |

2 | 13 |

3 | 19 |

4 | 25 |

5 | 28 |

6 | 29 |

7 | 29 |

a. Calculate the marginal product for each additional worker.

b. Each unit of output sells for $10. Calculate the value of the marginal product of each worker.

c. Compute the demand schedule showing the number of workers hired for all wages from zero to $100 a day.

## Input Factors

The factors with the help of which the output level of the firm is produced are called the input factors or the factors of production. The input factor can be labor, land, capital, and many more. The factors can be varied, but what they have in common is that they help to produce the desired output.

## Answer and Explanation: 1

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View this answer**(a)** The marginal product of labor is the incremental increase in the value of the total product or output with the employment of a labor into the...

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Chapter 3 / Lesson 49Understand the meaning of marginal product of labor. Learn the marginal product of labor (MPL) formula, its significance, and how to calculate MPL with examples.

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