Holding capital fixed at K=2 units, the firm’s production table shows when labor units (L) = 1, output (Q)=5; L=2, Q=11; L=3, Q=16; L=4, Q=20; L=5,…

Holding capital fixed at K=2 units, the firm’s production table shows when labor units (L) = 1, output (Q)=5; L=2, Q=11; L=3, Q=16; L=4, Q=20; L=5, Q=22. Also, the firm can sell each unit of output at a price P=$2.

If so, the marginal product of labor MPL for the 4th unit of labor is ____.

Question options: I answered C, 16. Is this correct

a) 

20

b) 

8

c) 

16

d) 

4

Question 12

0 / 1 point

You estimate a short-run production function to be Q = 16L0.8 which gives a Marginal Product of Labor function MPL = 0.8*16L-0.2 = 12.8/L0.2 If the product made by the labor sells at a price P=$8 per unit, then the Marginal Revenue Product of Labor MRPL for the 100th labor unit is ______. If labor costs wage = $46 per labor unit, then the firm ______ hire the 100th labor unit.

Question options: I answered D, $52.6; should. Is this correct?

a) 

$40.8; should not

b) 

$47.6; should

c) 

$35.7; should not

d) 

$52.6; should

Question 13

0 / 1 point

You estimated a short-run production function to be Q = 10L0.5 where L is units of labor. If so, the Marginal Product of Labor for the 16th unit of labor is _______.

Question options: I answered C, 3.75. Is this correct?

a) 

5.0

b) 

1.25

c) 

3.75

d) 

2.5