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Question

$5.00 MBA 502

  • From Economics: General-Economics
  • Closed, but you can still post tutorials
  • Due on Oct. 30, 2011
  • Asked on Oct. 29, 2011 at 09:33:46AM
Asked by :
angieMS
angieMS
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Questions Asked: 47
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Q:

 

You decide to quit your current job to start a company dedicated to making furniture. You can hire workers for $50,000 per year (full cost including taxes and other payroll expenses) and sell each piece of furniture for $500. 

The number of pieces of furniture you can make per year depends on the number of workers you hire. Below is a table that shows that relationship.

                Number of         

          Workers   Pieces 

 

10 1000
19 2000
25 3000
32 4000
40 5000
50 6000
62 7000
78 8000
100 9000
130 10000

a. Construct a table showing the average and marginal product of labor and marginal revenue product of labor. 

b. How many workers will you hire? Explain your answer.