Use Table 2 for questions 910 Table 2 Margi VMP Wage Workers

Use Table 2 for questions 9-10 Table 2 Margi VMP Wage Workers Output Product of Labor 0 50 30 19 9 $500 $19 $300 $19 $190 $19 $90 $19 $20 $19 $-20 $19 50 80 108 110 108 4 9. Table 2 shows output, marginal product VMPL and wage data for a firm. The firm sells its output at a fixed price. What is this price? A. p $19 B. p-$50 C. p-$2 D. p-$10 10. Given the information in Table 2, the firm should hire A. L=1 worker B. L-3 workers C. L=4 workers D. L=5 workers

1.Equilibrium output is such that wage rate is equal to Marginal product of labour.This is at output 99 units.W=MPL=19.

Thus,price=19

Answer-A

2.Number of workers hired=3

Answer-B

Use Table 2 for questions 9-10 Table 2 Margi VMP Wage Workers Output Product of Labor 0 50 30 19 9 $500 $19 $300 $19 $190 $19 $90 $19 $20 $19 $-20 $19 50 80 10

Use Table 2 for questions 910 Table 2 Margi VMP Wage Workers

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