A competitive firm sells its output for $60 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day. The firm pays its workers a wage of $150 per day. For the 11th worker, the value of the marginal product of labor is
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Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage and that labor is the only input that varies for the firm. If the firm pays a wage of $700 per week and the marginal product of labor equals 35 units per week, then the marginal cost of producing an additional unit of output is a. $0. b. $20. c. $700. d. $35.
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Shows levels of employment (Labor), the marginal product at each of those levels, and a monopoly's marginal revenue. $$\begin{array}{l|l|l}\hline {\text { Labor }} & {\text { Marginal Product of Labor }} & {\text { Price of the Product }} \\\hline 1 & 10 & \$ 10 \\\hline 2 & 8 & \$ 7 \\\hline 3 & 7 & \$ 5 \\\hline 4 & 5 & \$ 4 \\\hline 5 & 3 & \$ 2 \\\hline 6 & 1 & \$ 1 \\\hline\end{array}$$ a. What is the monopoly's marginal revenue product at each level of employment? b. If the monopoly operates in a perfectly competitive labor market where the going market wage is $\$ 20,$ what is the firm's profit maximizing level of employment?
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