Econ homework

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Markets for Factors of Production

 

 

 

1.      Wanda owns a fish shop. She employs students to sort and pack the fish. Students can pack the following amounts of fish in an hour. Wanda can sell her fish for 33.33 cents a pound, and the wage rate of packers is $7.50 an hour.

 

 

 

Number of students

Quantity of fish (pounds)

Marginal product of the students

Marginal revenue product of the students

1

20

 

 

2

50

 

 

3

90

 

 

4

120

 

 

5

145

 

 

6

165

 

 

7

180

 

 

8

190

 

 

 

 

 

a.       Please calculate the marginal product and the marginal revenue product of the students, then fill out the last two blank columns.

 

 

 

 

 

 

 

b.      How many students does Wanda employ?

 

 

 

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