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:
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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
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  1. Tutorial # 00002761 Posted By: expert-mustang Posted on: 10/29/2013 07:36 AM
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    Using the data presented, in ...
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