Help with microeconomics
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. OUR PROCESSOrderPaymentWritingDeliveryWhy Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
1. ; Explain, in your own words, the meaning of MRP. 2. ; How is MRP computed? 3. ; Using the data presented, in the short run, how many workers would you recommend Sullivan’s hire per day to maximize profits? 4. ; Explain how you arrived at this number. |