Sullivan's Custom Cabinets operate

Question # 00002947 Posted By: expert-mustang Updated on: 10/29/2013 07:35 AM Due on: 10/29/2013
Subject Economics Topic General Economics Tutorials:
Dot Image
Sullivan's Custom Cabinets operate in a perfectly competitive market and employs labor and capital. Labor costs $30 a day. Machines cost $36 a day. Currently, Sullivan's has six machines and the marginal revenue product of capital is $30. Output sells at $5 per unit. Sullivan's hires you as a consultant and provides you with the following production function.
Workers (days) Total Output
1 9
2 17
3 24
4 30
5 35
6 39
7 42
1. Explain, in your own words, the meaning of MRP.
2. Using the data presented, in the short run, how many workers would you recommend Sullivan's hire per day to maximize profits?
3. Explain how you arrived at this number
Dot Image
Tutorials for this Question
  1. Tutorial # 00002761 Posted By: expert-mustang Posted on: 10/29/2013 07:36 AM
    Puchased By: 4
    Tutorial Preview
    Using the data presented, in ...
    Attachments (106 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On Rating Affordable service 01/01/2014
    a...ack Rating Very quick and supportive tutor response 01/01/2014

Great! We have found the solution of this question!

Whatsapp Lisa