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8 October, 00:20

You are the manager of a firm producing green chalk. The marginal product of labor is:

MPL = 24L - 1/2

Suppose that the firm is a competitor in the green chalk market. The price of green chalk is $1 per unit. Further suppose that the firm is a competitor in the labor market. The wage rate is $12.00 per hour.

Given the information, what is the revenue product of labor?

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Answers (1)
  1. 8 October, 03:53
    0
    24L^ - 1/2

    Explanation:

    Given that

    Marginal product of labor is

    MPL = 24L^ - 1/2

    Power sign is not given in the question so we considered it

    The price of green chalk = $1 per unit

    The wage rate = $12 per hour

    By considering the above information, the revenue product of labor would be

    = 24L^ - 1/2

    = Price of green chalk * 24L^ - 1/2

    = $1 * 24L^ - 1/2

    = 24L^ - 1/2
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