Ask Question
11 June, 12:52

Suppose that a monopoly firm finds that its MR is $50 for the first unit sold each day, $49 for the second unit sold each day, $48 for the third unit sold each day, and so on. Further suppose that the first worker hired produces 5 units per day, the second 4 units per day, the third 3 units per day, and so on. What is the firm's MRP for each of the first five workers?

+5
Answers (1)
  1. 11 June, 15:31
    0
    The correct answer to the following question is that the MRP for the 1st worker - $240, 2nd worker - $174, for 3rd worker - $120, 4th worker - $75 and for the 5th worker is $36.

    Explanation:

    It is given that for a monopoly firm, the 1st unit it sells each day is for $50 and for each second it is $49 and so on. Also the first worker hired will produce 5 units a day, second would produce 4 units a day and so on.

    So for finding the MRP - Change in revenue / Change in labor

    1 st worker - $50 + $49 + $48 + $47 + $46 / $1

    = $240

    2nd worker - $45 + $44 + $43 + $42 / $1

    = $174

    3 rd worker - $41 + $40 + $39 / $1

    = $120

    4th worker - $38 + $37 / $1

    = $75

    5th worker - $36
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose that a monopoly firm finds that its MR is $50 for the first unit sold each day, $49 for the second unit sold each day, $48 for the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers