Question

The production function of a bike manufacturing company is the following: Workers Bikes Produced per Week Marginal Product of Labor Marginal Revenue Product of Labor 0 0 n/a n/a 1 8 2 15 3 20 4 23 a) The price of a bike is $200. Calculate the marginal product of labor and the marginal revenue product of labor for each level of employment.

          The production function of a bike manufacturing company is the following:
Workers Bikes Produced
per Week
Marginal Product
of Labor
Marginal Revenue
Product of Labor
0 0 n/a n/a
1 8
2 15
3 20
4 23
a) The price of a bike is $200. Calculate the marginal product of labor and the marginal revenue
product of labor for each level of employment.
        
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Added by Jessica G.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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The production function of a bike manufacturing company is the following: Workers Bikes Produced per Week Marginal Product of Labor Marginal Revenue Product of Labor 0 0 n/a n/a 1 8 2 15 3 20 4 23 a) The price of a bike is $200. Calculate the marginal product of labor and the marginal revenue product of labor for each level of employment.
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Transcript

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00:01 So here let's reproduce that.
00:03 So we have days of labor, days of labor, 0, 1, 2, 3, 4, 5, 6, and 7.
00:10 We have quantity of output, which is 0, 7, 13, 19, 25, 28, 29, and 29.
00:22 And we need to calculate marginal product.
00:24 So the marginal product is the change in q over the change in labor.
00:29 So what i'm doing is i'm looking at how much quantity increases.
00:34 So the change for each worker.
00:36 Each worker is adding a different amount of use to the production process.
00:44 So there's my marginal product, right? marginal product is the change in total output.
00:49 Now value of the marginal product is equal to the marginal product times the price...
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