(Daddy Warbucks employs workers in his perfectly competitive factory. Mr. Smith employs workers in his monopolistic factory as the only producer of the thing you really want. Given the following information, determine how many workers each firm will employ: The weekly salary is $206 and the price of each product initially is $15.00.)

Question

(Daddy Warbucks employs workers in his perfectly competitive factory.  Mr. Smith employs workers in his monopolistic factory as the only producer of the thing you really want.  Given the following information, determine how many workers each firm will employ: The weekly salary is $206 and the price of each product initially is $15.00.)
Workers  Total Product  Marginal Revenue
0            0              ---
1           100             $14.00
2           225             $13.00
3           325             $12.00
4           400             $10.00
5           450             $9.00
6           475             $8.00
7           485             $7.00
8           490             $6.00

1. Why does Marginal Revenue Product initially rise, and then fall?

2. Why does a monopolist firm hire fewer workers than a competitive firm?

3.Daddy Warbucks will employ _____ workers. Mr Smith will employ ________ workers.

I need a little assistance, I think I have the correct answers but I need to make sure. Thanks in advanced..

economyst · Answer

Take a shot, what do you think? Repost and i or others will look at your answers. Hint: I think Warbucks hires 6, Smith hires 5.

Lizzy · Answer

Yes those are the answers I got too! I just wanted to see if I was right.. Thanks

Elizabeth · Answer

MEEE TOOOOO!!!