wage rate is $10 per hour, the firm's profit-maximizing level of labor employment would be:
First, we need to find the marginal revenue product of labor (MRPL) at each level of labor employment. The MRPL is equal to the marginal product of labor (MPL) multiplied by the market price of the output. In this case, the MPL is the derivative of the production function with respect to labor (L), which is 20. The market price of the output is not given, so we cannot find the exact MRPL.
However, we can still compare the wage rate to the worker's VMP (Value Marginal Product) to determine if it is less than, equal to, or greater than the wage rate. The VMP is calculated by multiplying the MPL by the price of the output. Since we don't have the exact price of the output, we cannot determine the worker's VMP.
Therefore, we cannot determine if the wage rate is less than, equal to, or greater than the worker's MRP or VMP without more information or assumptions.
A profit-ximizing monopolist firm in product market and competitive in lab
wage rate
Less than the worker's MRP
Equal to the worker's MRPL
A. Equal to the worker's VMP 8. Greater than the worker's VMP
5. Suppose that a firin's production function is given by Q=20L-21. If the
1 answer
1 answer