Number of Workers (L) Output (Q)
a) Its marginal physical product of labor (MPPL) schedule;
(b) Its (MPPL/MRCL) schedule, given a fixed wage (W = MRCL) of $25 per hour per worker.
(c) Assuming that capital (K) is held constant at 2 machines and MPPK/MRCK = 10, what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources?
Please refer attached file for better clarity of formulas and tables.
Use the following data for a firm's output at various levels of employment (L) to calculate:
No. of workers (L) Output MPPL MPPL/MRCL MPPK/MRCK
L Q Change in Q/change in L MMPL/$25
1 100 100 ...
Solution describes the steps to calculate least-cost input-combination of labor and capital.