Answer Happy

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $50,000 to $58,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $62,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? 8000 The marginal revenue product of capital? 120000 b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP Pd? c. Is the firm using the least-costly combination of inputs? No, because MRPC/PC< MRPL/PL Yes, because MRPC/PC - MRPL/PL No, because MRPC/PC > MRPL/PL Yes, because MRPC/PC < MRPL/PL d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent? Revenue is increased more by spending money on an additional worker. Revenue is increased by the same amount whether spending on an additional tractor or worker. Revenue is increased more by spending money on an additional tractor. Droit 10 of 12 # Next >