The IDEA Company has the following production function for p

The IDEA Company has the following production function for producing light bulbs. Find the MPN for each level of employment and Till in table above. The IDEA Company pays W = $40/hour and the price of each light bulb = $7. Calculate the real wage?

Solution

Table calculation has been done correctly.

Real wage (w)=Nominal wage/price level

w=40/7=5.71 is real wage