00:01
In this problem, the short run production function is given.
00:05
We are able to see the total output produced when different amounts of labor inputs are hired.
00:11
Each output unit produced by this firm is sold at a price of p is equal to $3.
00:17
Fill out the rest of the table from the given information.
00:22
So we have labor and output.
00:29
So with zero labor, it makes sense we have zero output.
00:34
Then we have 1 for the labor input and then the output is 85.
00:42
Then we have 2 for labor, output is 145.
00:48
And then when labor is 3, output is 195.
00:55
And when labor is 4, output is 225.
00:59
When labor is 5, output is 245.
01:06
And then when it's 6, it's 255.
01:10
So we need to fill out the column for marginal price, marginal revenue product, and total revenue.
01:30
So our marginal price is the change in quantity over change in labor.
01:42
Or change in output over change in labor.
01:46
So output is going to be q, labor will be l.
01:52
So change in quantity over change in labor.
01:55
So when labor is 0 and output is 0, marginal product is 0.
02:01
Then when output is 85, the change in quantity is 85 minus 0.
02:11
And then the change in labor is 1 minus 0.
02:13
And then that just gives us 85.
02:17
So then next we find the change in output, 145 minus 85 over 2 minus 1.
02:29
So 145 minus 85 gives you 60 over 1.
02:35
So that's going to be 60.
02:38
And then we do the same thing for the next one.
02:50
So you can see that our change in labor is always 1...