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 | 0 |
| 1 | 7 |
| 2 | 13 |
| 3 | 19 |
| 4 | 25 |
| 5 | 28 |
| 6 | 29 |
| 7 | 29 |
Calculate the marginal product for each additional worker.
Productivity:
Productivity is measured by finding the output of a good or service per resource used in production. Common resources in economic production are labor, raw materials, equipment, machinery, and intellectual property. These resources are often categorized as inputs, so productivity can be measured by finding the output per input ratio for the entire production or for each additional resource used. Increasing productivity is the goal of many firms as it will increase their efficiency and profitability.
Answer and Explanation:
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View this answerThe marginal product for each worker is calculated by finding the additional output for each additional day of labor.
There is not a marginal product...
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Marginal Product of Labor: Definition, Formula & Example
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Chapter 3 / Lesson 49
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Understand 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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